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Wednesday, October 1, 2025

Phoenix Education Partners (PXED) IPO overview


Phoenix Education Partners, Inc. (formerly AP VIII Queso Holdings, L.P.), the parent company of the University of Phoenix—a major provider of online higher education programs for working adults—launched its initial public offering (IPO) on September 30, 2025. The company, backed by private equity firms Apollo Global Management and Vistria Group, was taken private in a $1.1 billion deal in 2017 and is now returning to public markets after more than eight years. As of October 1, 2025, the IPO is in the pricing phase, with trading expected to begin soon on the New York Stock Exchange (NYSE) under the ticker symbol PXED. No new capital will go directly to the company; all proceeds will go to selling shareholders, primarily Apollo and Vistria.Key IPO Details
Aspect
Details
Shares Offered
4,250,000 shares of common stock (all by existing shareholders).
Overallotment Option
Underwriters have a 30-day option to purchase up to 637,500 additional shares.
Expected Price Range
$31.00–$33.00 per share.
Potential Proceeds
Up to $140.3 million (before underwriting discounts).
Valuation Target
Up to $1.17–$1.2 billion (fully diluted).
Lead Underwriters
Morgan Stanley, Goldman Sachs, BMO Capital Markets, Jefferies.
Dividend Plans
Quarterly cash dividend of approximately $0.84 per share post-IPO.
Shareholder Sales
Apollo selling ~3.55 million shares; Vistria ~0.7 million shares. Apollo will retain majority voting control.
Financial Snapshot
  • Recent Performance (nine months ended May 31, 2025): Revenue of $750 million (up from $710 million year-over-year); net income of $118 million (up from $105 million).
  • Trailing 12-Month Revenue: ~$990 million.
  • Valuation Multiple: ~1.2x revenue, comparable to peers like Grand Canyon Education.
  • The company has focused on streamlining operations, exiting non-core programs, and divesting international assets since going private. A proposed $550 million sale to a University of Idaho-affiliated nonprofit fell through earlier in 2025.
Background and ContextFounded in 1976, the University of Phoenix specializes in flexible, online undergraduate, graduate, certificate, and non-degree programs. It operates in a competitive for-profit online education sector, facing challenges like enrollment declines and regulatory scrutiny but benefiting from post-pandemic demand for accessible learning. The IPO aligns with a broader resurgence in private equity-backed listings amid favorable U.S. market conditions.For the latest updates, including final pricing or roadshow details, check the SEC filing or NYSE listings. This is not investment advice—consult a financial advisor for personalized guidance.

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