McGraw Hill, a well-known company that provides educational books and learning tools around the world, officially started selling its stock on the New York Stock Exchange (NYSE) this Thursday. If you’re looking for it in the market, you can find it under the symbol “MH,” and each share was priced at $17, which is the same price the company had set earlier for its Initial Public Offering (IPO).
An IPO is basically when a company decides to sell a part of itself to the general public to raise money. In this case, McGraw Hill put 24.39 million shares up for sale. After subtracting the costs of doing the IPO, the company will end up with about $385.7 million in cash.
So, what will McGraw Hill do with that money?
McGraw Hill says they plan to pay off some of the money they borrowed earlier, which helps them become more financially stable and reduce debt.
There’s also something extra happening: A major investor who already owns a large number of McGraw-Hill shares has agreed to give the IPO managers the option to sell up to 3.65 million extra shares within the next 30 days. This is only if there’s more demand than expected. But to be clear, McGraw Hill itself won’t make any money from those extra share sales; that money will go to the investor who’s selling them.
Goldman Sachs, a major player in the financial sector, is overseeing this entire process to ensure everything runs smoothly.
McGraw Hill is now a public company; you can buy its stock under “MH” for $17, and it’s using the money to pay off some loans and clean up its balance sheet.
