Reuters: University of Phoenix Owner Seeks $1.17B Valuation in IPO

Phoenix Education Partners, owner of the University of Phoenix, is seeking a valuation of up to $1.17 billion in its return to the U.S. stock market through an initial public offering (IPO), Reuters reports. The company's private equity backers, Apollo Global Management and Vistria Group, aim to raise up to $140.3 million by offering 4.25 million shares, priced between $31 and $33 each. According to the IPO filing, Apollo Global Management plans to sell 3.55 million shares but will retain majority voting control post-offering. Vistria Group will sell the remaining 0.7 million shares. Josef Schuster, CEO of IPOX, anticipates that the current positive sentiment surrounding U.S. IPOs will continue to benefit private equity-backed offerings. He also observed that because proceeds from these transactions do not accrue to the company, it creates a "buyer's market" for these deals. Founded in 1976, the University of Phoenix primarily serves working adults in the U.S., offering 72 degree-granting programs and 33 non-degree certificate programs. In 2017, Apollo Education Group, the university's predecessor, was taken private for $1.1 billion by a consortium that included Apollo and Vistria. Since then, the university has divested its international schools and discontinued non-core programs. This IPO attempt follows the termination of a 2023 acquisition agreement, in which a non-profit organization affiliated with the University of Idaho had planned to acquire the University of Phoenix's operations for $550 million.