The IPO Buzz: McGraw Hill (MH) Prices IPO at $17 – $2 Below Range

McGraw Hill (MH) priced its IPO at $17.00 – $2.00 below range – and sold 24.39 million shares – the number of shares in the prospectus – to raise $414.63 million on Wednesday night, July 23, 2025. The terms in the prospectus for McGraw Hill’s IPO had set a price range of $19.00 to $22.00. McGraw Hill’s stock is expected to start trading tomorrow – Thursday, July 24, 2025 – on the New York Stock Exchange. At pricing, McGraw Hill had a market cap of about $3.25 billion. Goldman Sachs,  BMO Capital Markets and J.P. Morgan led the joint book-runners’ team, which included Macquarie Capital, Morgan Stanley, Deutsche Bank Securities and UBS Investment Bank. The IPO’s pricing marks McGraw Hill’s return to life as a publicly traded company. McGraw Hill (MH), based in Columbus, Ohio, was taken private in 2012 when Apollo Global Management, a private equity behemoth, bought McGraw Hill’s educational publishing unit for $2.5 billion. Three years later – in 2015 – Apollo explored an IPO for the textbook business, but did not go through with it. In 2021, Apollo sold the McGraw Hill educational publishing business to Platinum Equity, a private equity firm based in California, for $4.7 billion, according to the prospectus. McGraw Hill, the magazine company and textbook publisher, had traded on the NYSE under the symbol “MHP” until 2012, when Apollo bought the educational publishing unit. After the IPO, Platinum Equity will control McGraw Hill through its ownership of a stake that represents about 86.5 percent of the voting power of the company’s outstanding stock, according to the prospectus. McGraw Hill (MH) describes itself in the prospectus as “a leading global provider of information solutions for education across K-12 to higher education, and through professional learning,” which includes medical school, according to the prospectus. The publishing company was founded in 1888. “It’s an ‘old school’ company – pun intended,” a leading IPO player said. McGraw Hill pointed out in the prospectus that these are not the best of times for the educational publishing business. The company is facing some headwinds from the possibility that the U.S. Department of Education will be shut down. From the prospectus: “The current U.S. administration has expressed an intention to potentially dismantle the U.S. Department of Education. This may lead to changes involving the oversight of our industry resulting in a fragmented education system with varying standards and requirements across states in the absence of federal regulations and oversight. The nature, timing and political effects of potential changes to current federal policy, (as well as to the) legal and regulatory framework affecting our industry remain highly uncertain. At this time, it is unclear what policies, if any, will change and whether uncertainty in this regard will adversely affect our operating environment. Any unfavorable developments in government regulation of education or the U.S. Department of Education could have an adverse effect on our results of operations and financial condition.” McGraw Hill (MH) is not profitable, according to financial statements in the prospectus: The company reported a net loss of $85.8 million on revenue of $2.1 billion for the 12 months that ended on March 31, 2025 (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on the IPOScoop.com  website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and the rating is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the  shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.