MW McGraw Hill and NIQ to test appetite for IPOs by mature companies with billions in sales

By Steve Gelsi

The digital education company and the consumer researcher have histories on Wall Street and are backed by private-equity firms

Shopping-behavior researcher NIQ Global Intelligence PLC set plans to raise up to $1.2 billion, and digital learning specialist McGraw Hill Inc. projected dollar proceeds of up to $537 million on Monday as the two mature companies prepare to go public.

The deals will test the appetite for larger companies with longer track records, with billions in annual revenue, compared with the startup companies that typically capture Wall Street's imagination in the market for initial public offerings.

But with many companies staying private for longer, recent IPOs have tended to come from larger businesses - even in the tech world.

CoreWeave Inc. (CRWV), Circle Internet Group Inc. $(CRCL.UK)$ and Chime Finanical Inc. $(CHYM)$ all went public as sizable companies partly because the growth in private markets has helped provide access to capital without selling common stock in IPOs.

The Renaissance IPO ETF IPO has rallied 21.6% over the past three months, while the S&P 500 index SPX has advanced 15.5%.

Larger companies may offer investors a more stable option in volatile markets with their critical mass to cope with economic uncertainty.

McGraw Hill's (MH) initial public offering comes four years after private-equity firm Platinum Equity completed its acquisition of the educational publishing company for about $4.5 billion from Apollo Global Management Inc. $(APO)$.

A former iteration of the business was publicly traded for decades before it rebranded itself as S&P Global Inc. $(SPGI)$ in 2016.

Four years earlier, Apollo Global Management had bought McGraw-Hill Education from McGraw Hill, before selling it to Platinum Equity in 2021.

Meanwhile, Advent International LP is the largest shareholders of NIQ, which was carved out in 2021 from Nielsen Holdings, formerly a publicly traded company.

NIQ $(NIQ)$ was formerly known as Nielsen Connect, which dates back to Arthur C. Nielsen, credited as the "creator of market share" some 100 years ago. Nielsen was also a prominent name for decades as the source of of TV viewership ratings.

The terms set for McGraw Hill's IPO suggest a market capitalization of more than $4 billion, while NIQ's IPO terms point to a market value of more than $7 billion.

NIQ cites 'culture shift' as selling point

McGraw Hill and NIQ said they've modernized themselves for a digital marketplace and are pitching themselves as reinvented businesses.

NIQ plans to offer 50 million shares at an estimated price range of $20 to $24 for proceeds of up to $1.2 billion with underwriters led by J.P. Morgan, BofA Securities and UBS Investment Bank.

The company plans to trade under the symbol "NIQ" on the NYSE.

NIQ focuses on providing brands and retailers data on consumer behavior for a wide range of clients including Amazon.com $(AMZN.UK)$, Coca-Cola Co. (KO) and Meta Platforms Inc. $(META)$.

"After four years of significant organic and inorganic investment and a culture shift to client-focused innovation, NIQ now possesses a modernized tech stack that enables rapid innovation for clients, a broadened global coverage and enhanced e-commerce offerings, AI-driven analytics and a disciplined go-to-market motion," NIQ Chief Executive Jim Peck said in a letter to prospective shareholders.

With 295 million shares outstanding in the company when it goes public, NIQ is slated to go public with a market capitalization of about $7.1 billion if the IPO prices at the top of the estimated range of $20 to $24 a share.

That market valuation amounts to about 1.8 times its 2024 revenue of $3.97 billion.

For the three months ended March 31, NIQ reported a net loss of $73.7 million, compared with a year-ago loss of $173.9 million. Revenue for the same period rose to $965.9 million from $961.9 million.

McGraw Hill says it'll help educators with AI

McGraw Hill said it plans to sell 24.39 million shares at an estimated price range of $19 to $22 a share with a team of underwriters led by Goldman Sachs.

The New York-based company plans to trade under the symbol "MH" on the NYSE.

"At McGraw Hill, we recognize that the integrity of educational content is of utmost importance, especially as generative AI becomes more integrated into the learning process," the company said in its IPO prospectus.

"With the proliferation of AI-generated generic content, the risks of inaccurate and low-quality information are heightened, which is why our proprietary content is rigorously researched and designed to meet the highest quality standards," the company said.

McGraw Hill reported a fiscal 2025 loss of $85.84 million on revenue of $2.1 billion. In fiscal year 2024, it lost $193.02 million on revenue of $1.96 billion.

The company said will have 191 million shares of common stock when it goes public, with a market capitalization of about $4.2 billion if the IPO prices at $22, the top of its estimated range.

Now that McGraw Hill and NIQ have set estimated price ranges for their IPOs they will meet with prospective investors before trading debuts on their stock - usually within a matter of weeks.

-Steve Gelsi

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July 14, 2025 10:29 ET (14:29 GMT)

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