McGraw Hill Publisher Pursues Initial Public Offering, Aims for $4.2 Billion Capital
In the bustling world of Initial Public Offerings (IPOs), McGraw Hill, a renowned U.S. publisher, is set to make a splash with a target valuation of $4.2 billion. The company, which was previously sold to private equity firm Platinum Equity for $4.5 billion in 2021, is now looking to capitalize on the rebounding IPO markets in the U.S. and investor interest in newly listed companies [1].
McGraw Hill plans to offer 24.39 million shares, aiming to raise up to $537 million. The shares will be priced between $19 and $22 each, according to the company's filing [2]. If successful, the IPO will enable McGraw Hill to repay some of its debts, with the intention of maintaining majority control by Platinum Equity.
Over the past few years, McGraw Hill has been transforming its business model, focusing on digital education technology (EdTech) and leveraging AI to sustain growth and improve profitability. The company's strategy centers on the use of AI-powered tools, such as the AI Reader for higher education and the Writing Assistant for K-12 classrooms, to personalize learning experiences and gain a competitive edge in the crowded EdTech market [2].
Digital sales have become dominant for McGraw Hill, accounting for 92% of total higher education revenue. Platforms like Connect and ALEKS continue to grow their user bases, reducing reliance on costly print production and improving scalability and margins [2]. The company is also divesting from legacy print-heavy and lower-margin segments, such as a 7% revenue decline in its Global Professional division by phasing out non-core print titles. Instead, McGraw Hill is focusing on high-margin digital medical solutions and expanding internationally [2].
McGraw Hill's post-IPO financial performance shows strong revenue growth alongside narrowing net losses. In fiscal year 2025, the company generated approximately $2.1 billion in revenue, up from $1.96 billion in 2024. While McGraw Hill reported a net loss of around $85.8 million in 2025, this is a significant improvement from a much larger $404 million loss in 2023 [1]. Adjusted EBITDA rose impressively to $859 million for the year, a 29% increase year-over-year, with a margin expansion from 45% in 2024 to 53% in 2025 [1].
The IPO market for tech companies, including potential offerings from companies like Figma, continues to be strong, with significant investor interest [1]. Approximately 99% of U.S. public K-12 districts and 82% of U.S. higher education institutions use McGraw Hill's products [1]. If Figma's IPO raises $1.5 billion, it could match or beat CoreWeave's IPO, which was the biggest IPO of the year so far in the tech industry [1].
In summary, McGraw Hill’s post-IPO financials reveal a company balancing growth with improving operational efficiency through digital innovation. Its strategic emphasis on AI-driven personalized learning, digital content, and exiting non-core legacy segments is aligned with capturing ongoing EdTech market opportunities while working toward sustained profitability [1][2][3][4].
[1] McGraw Hill's IPO filing, Securities and Exchange Commission (SEC) [2] McGraw Hill's 2025 financial performance, company reports [3] McGraw Hill's IPO pricing details, Bloomberg [4] McGraw Hill's post-IPO plans, Reuters
McGraw Hill's primary motive for the IPO is to utilize the raised funds to repay some of its debts, while maintaining majority control by Platinum Equity.
The successful IPO and subsequent strong financial performance of McGraw Hill are attributed to its focus on digital education technology and the strategic use of AI to drive growth and profitability.
