University of Phoenix Set for $1.2B IPO on NYSE
The University of Phoenix, a prominent online learning institution, has announced plans for an Initial Public Offering (IPO) in the U.S. This move comes after a complex series of transactions involving private equity firms and regulatory settlements.
The university, founded in 1976, is seeking a valuation of $1.2 billion in its IPO. It aims to raise up to $140.3 million by offering 4.25 million shares priced between $31 and $33 apiece. The company plans for its shares to trade on the New York Stock Exchange under the symbol PXED. The IPO is led by a consortium of investment banks including Morgan Stanley, Goldman Sachs, Bank of Montreal, Jefferies Financial Group, and Apollo Global Securities.
The IPO follows a 2017 acquisition of the University of Phoenix by Apollo Global Management and Vistria Group, along with a third private equity firm, Leonard Green & Partners. Apollo Global and Vistria are selling 3.55 million and 0.7 million shares respectively in the IPO. Funds affiliated with Apollo Global and Vistria purchased Apollo Education Group, the parent company of the University of Phoenix, for $1.1 billion in 2017.
In 2019, the Federal Trade Commission (FTC) reached a settlement with the University of Phoenix over aggressive marketing practices. The university had a net income of $113.1 million on revenue of $950 million for the fiscal year ended Aug. 31, 2024.
Recently, the majority owner of the University of Phoenix paid a $12.2 million fee to the University of Idaho after terminating a 2023 agreement to sell most of its assets. Despite these developments, the University of Phoenix continues to look towards a bright future, with its IPO set to significantly impact its financial landscape.
