This US university has filed for an IPO
What's the story
The University of Phoenix's parent company has filed for an initial public offering (IPO) with the US Securities and Exchange Commission (SEC). The move comes after a failed attempt to sell the university to another institution for $550 million. Apollo Global Management Inc. and Vistria Group, the current owners of the Arizona-based educational institution, were behind this attempted sale.
Name change
Details about the filing
The entity, AP VIII Queso Holdings LP, has filed with the US SEC for its IPO. Before the offering closes, it will be renamed Phoenix Education Partners Inc. The firm paid a $12.2 million fee to the University of Idaho in June, after pulling out of a 2023 deal to sell most of its assets.
Financials
Financial performance and potential valuation
For the fiscal year ending August 31, 2024, Phoenix Education Partners Inc. posted a net income of $113.1 million on revenues of $950 million. This is an increase from the previous year's net income of $64.9 million on revenues of $835.2 million. An IPO could value the company between $1.5 billion and $1.7 billion, Bloomberg News has reported.
Background
About the University of Phoenix
Founded in 1976, the University of Phoenix provides online education including bachelor's and master's degrees in business, healthcare, and education. The university had a 76% employment rate among its students during the fiscal year 2024. In 2019, it reached an FTC settlement over aggressive marketing practices related to a campaign before its private ownership by Apollo and Vistria.
Offering details
Upcoming IPO details
The upcoming IPO offering is being managed by major financial institutions including Morgan Stanley, Goldman Sachs Group Inc., Bank of Montreal, Jefferies Financial Group Inc., and Apollo Global Securities. The company's shares will be listed on the New York Stock Exchange under the symbol PXED. This marks a significant step in the University of Phoenix's journey toward becoming a publicly traded entity.