Inbizzy, New York – McGraw Hill, a leading American provider of educational materials and digital learning solutions, officially began trading on the New York Stock Exchange (NYSE) after raising $414.63 million in its initial public offering (IPO). Despite pricing its shares below the expected range, the listing marks a significant milestone in the company’s transformation toward technology-driven education.
The company offered 24.39 million shares at $17 each, lower than the originally marketed range of $19 to $22. McGraw Hill’s stock opened flat and closed unchanged at the IPO price, valuing the company at around $3.2 billion based on its outstanding shares.
Private equity firm Platinum Equity, which acquired McGraw Hill from Apollo Global Management in 2021 for $4.7 billion, remains the majority shareholder with control of nearly 87% of the company’s shares after the IPO. McGraw Hill also reported having approximately $3.2 billion in total debt.
IPO Market Recovery in the US
McGraw Hill’s listing comes at a time when the US IPO market is showing signs of revival. Following a temporary slowdown in April amid global economic uncertainty and trade policy concerns, new listings have resumed momentum. According to data compiled by Bloomberg, US IPOs have raised $19.06 billion so far this year.
McGraw Hill had previously filed for a public listing confidentially in 2022, after shelving an earlier IPO plan in 2018.
A Legacy Publisher Transforms into a Digital Learning Powerhouse
Founded in 1888, McGraw Hill is best known for its legacy in textbook publishing. However, the company has since pivoted aggressively toward digital learning platforms, including AI-powered math programs and an AI Reader built on proprietary course content.
These digital tools are now used by over 26 million paid users across K-12, higher education, and professional learning segments. In the fiscal year ended March 31, digital products contributed to nearly two-thirds of McGraw Hill’s total revenue, up from less than one-third in 2015.
AI: A Double-Edged Sword for EdTech
While artificial intelligence plays a central role in McGraw Hill’s product evolution, it also presents potential risks. In its IPO filing, the company noted that generative AI could enable easier creation of competing educational content, potentially reducing demand for its own offerings.
Nevertheless, CEO Simon Allen views AI as a major growth driver for the company.
“We see it as a significant tailwind for the company because the products we can create are much more meaningful for the students,” said Allen, a nearly four-decade industry veteran.
“A physical textbook is a fairly inefficient way to learn because it is so static,” Allen said in an interview. “You can learn so much better, and the ability to personalize learning can only be done digitally.”
Financial Performance and Underwriters
In the fiscal year ending March 31, 2025, McGraw Hill posted a net loss of $85.8 million on $2.1 billion in revenue, an improvement from the $193 million loss on $1.96 billion in revenue the previous year.
The IPO was backed by a syndicate of 13 investment banks, including Goldman Sachs, JPMorgan Chase, Bank of Montreal, Macquarie Capital, and Morgan Stanley.
McGraw Hill shares now trade on the NYSE under the ticker symbol MH, opening a new chapter in the company’s 135-year journey.
