Publisher McGraw Hill raises $415 million in US IPO
The company sold 24,390,000 shares, priced at $17 each, below its marketed range of $19 to $22. The offering valued McGraw at $3.25 billion.
The IPO market is gaining momentum on the back of a rally in equities and some stellar debuts in recent months.
Private equity sponsors, who have been sitting on a massive backlog of portfolio companies waiting to go public, are looking to capitalize on this window.
McGraw Hill will debut on the New York Stock Exchange on Thursday, nearly 13 years after it was taken private by Apollo (APO.N), opens new tab. The private-equity giant had also attempted to re-list the company in 2015.
It was then sold to Platinum Equity, which will continue to hold 84.6% of McGraw's total outstanding shares after the offering.
McGraw Hill is one of the most recognized names in the publishing industry, known for its textbooks and other learning resources, with 82% of U.S. higher education institutions using its products, according to company filings.
The company revealed in its IPO filing that revenue rose 7% to over $2 billion for the fiscal year ended March 31.
It aims to trade on the NYSE under the ticker symbol "MH".
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The Independent
21 minutes ago
- The Independent
US and China to talk in Stockholm on trade with eye on Trump-Xi summit later this year
When top U.S. and Chinese officials meet in Stockholm, they are almost certain to agree to at least leaving tariffs at the current levels while working toward a meeting between their presidents later this year for a more lasting trade deal between the world's two largest economies, analysts say. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to hold talks for the third time this year — this round in the Swedish capital, nearly four months after President Donald Trump upset global trade with his sweeping tariff proposal, including an import tax that shot up to 145% on Chinese goods. 'We have the confines of a deal with China,' Trump said Friday before leaving for Scotland. Bessent told MSNBC on Wednesday that the two countries after talks in Geneva and London have reached a 'status quo,' with the U.S. taxing imported goods from China at 30% and China responding with a 10% tariff, on top of tariffs prior to the start of Trump's second term. 'Now we can move on to discussing other matters in terms of bringing the economic relationship into balance,' Bessent said. He was referring to the U.S. running a $295.5 billion trade deficit last year. The U.S. seeks an agreement that would enable it to export more to China and shift the Chinese economy more toward domestic consumer spending. The Chinese embassy in Washington said Beijing hopes 'there will be more consensus and cooperation and less misperception' coming out of the talks. With an eye on a possible leaders' summit, Stockholm could provide some answers as to the timeline and viability of that particular goal ahead of a possible meeting between Trump and Chinese leader Xi Jinping. 'The meeting will be important in starting to set the stage for a fall meeting between Trump and Xi,' said Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute. 'Beijing will likely insist on detailed preparations before they agree to a leaders' meeting.' In Stockholm, the two sides are likely to focus on commercial announcements to be made at a leaders' summit as well as agreements to address 'major irritants,' such as China's industrial overcapacity and its lack of control over chemicals used to make fentanyl, also to be announced when Xi and Trump should meet, Cutler said. Sean Stein, president of the U.S.-China Business Council, said Stockholm could be the first real opportunity for the two governments to address structural reform issues including market access in China for U.S. companies. What businesses will be seeking coming out of Stockholm would largely be 'the atmosphere' — how the two sides characterize the discussions. They will also look for clues about a possible leaders' summit because any real deal will hinge on the two presidents meeting each other, he said. Fentanyl-related tariffs are likely a focus for China In Stockholm, Beijing will likely demand the removal of the 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. This round of the U.S.-China trade dispute began with fentanyl, when Trump in February imposed a 10% tariff on Chinese goods, citing that China failed to curb the outflow of the chemicals used to make the drug. The following month, Trump added another 10% tax for the same reason. Beijing retaliated with extra duties on some U.S. goods, including coal, liquefied natural gas, and farm products such as beef, chicken, pork and soy. In Geneva, both sides climbed down from three-digit tariffs rolled out following Trump's 'Liberation Day' tariffs in April, but the U.S. kept the 20% 'fentanyl' tariffs, in addition to the 10% baseline rate — to which China responded by keeping the same 10% rate on U.S. products. These across-the-board duties were unchanged when the two sides met in London a month later to negotiate over non-tariff measures such as export controls on critical products. The Chinese government has long protested that American politicians blame China for the fentanyl crisis in the U.S. but argued the root problem lies with the U.S. itself. Washington says Beijing is not doing enough to regulate precursor chemicals that flow out of China into the hands of drug dealers. In July, China placed two fentanyl ingredients under enhanced control, a move seen as in response to U.S. pressure and signaling goodwill. Gabriel Wildau, managing director at the consultancy Teneo, said he doesn't expect any tariff to go away in Stockholm but that tariff relief could be part of a final trade deal. 'It's possible that Trump would cancel the 20% tariff that he has explicitly linked with fentanyl, but I would expect the final tariff level on China to be at least as high as the 15-20% rate contained in the recent deals with Japan, Indonesia, Vietnam,' Wildau said. US wants China to dump less, buy less oil from Russia and Iran China's industrial overcapacity is as much a headache for the United States as it is for the European Union. Even Beijing has acknowledged the problem but suggested it might be difficult to address. America's trade imbalance with China has decreased from a peak of $418 billion in 2018, according to the Census Bureau. But China has found new markets for its goods and as the world's dominant manufacturer ran a global trade surplus approaching $1 trillion last year — somewhat larger than the size of the U.S. overall trade deficit in 2024. And China's emergence as a manufacturer of electric vehicles and other emerging technologies has suddenly made it more of a financial and geopolitical threat for those same industries based in the U.S., Europe, Japan and South Korea. 'Some enterprises, especially manufacturing enterprises, feel more deeply that China's manufacturing capabilities are too strong, and Chinese people are too hardworking. Factories run 24 hours a day,' Chinese Premier Li Qiang said on Thursday when hosting European Commission President Ursula von der Leyen in Beijing. 'Some people think this will cause some new problems in the balance of supply and demand in world production.' 'We see this problem too,' Li said. Bessent also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil. However, Wildau of Teneo said China could demand some U.S. security concessions in exchange, such as a reduced U.S. military presence in East Asia and scaled-back diplomatic support for Taiwan and the Philippines. This would likely face political pushback in Washington. The Stockholm talks will be 'geared towards building a trade agreement based around Chinese purchase commitments and pledges of investment in the U.S. in exchange for partial relief from U.S. tariffs and export controls,' Wildau said. He doubts there will be a grand deal. Instead, he predicts 'a more limited agreement based around fentanyl.' 'That,' he said, 'is probably the preferred outcome for China hawks in the Trump administration, who worry that an overeager Trump might offer too much to Xi.' ___
Reuters
an hour ago
- Reuters
Euro, US stock index futures climb after US-EU trade deal
NEW YORK, July 27 (Reuters) - Investors appeared to embrace news of a trade deal between the U.S. and European Union on Sunday that is expected to bring clarity for companies and some certainty to markets ahead of U.S. President Donald Trump's Friday tariffs deadline. The euro rose against the U.S. dollar and was last up 0.15% at $1.176. The currency also was up about 0.1% against the pound and 0.2% against the Japanese yen . U.S. stock index futures rose after resuming trading late Sunday, with S&P 500 e-minis last up 0.3% and Nasdaq futures up 0.4%. Nikkei futures also traded higher. Trump and European Commission President Ursula von der Leyen on Sunday announced the deal, which imposes a 15% import tariff on most European Union goods, half the threatened rate. The EU-US deal is similar to parts of the framework agreement the U.S. clinched with Japan last week, but it also leaves open questions, including tariff rates on spirits. "It's really in line with the Japan deal, and I assume investors will view it positively as they viewed the Japan deal," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. "The reality is there will be higher tariffs, which may lead to more inflation, depending on how much of it is absorbed by the manufacturers and how much of it is passed on to consumers." Michael Brown, senior research strategist at Pepperstone in London, said: "For the euro, it removes that risk of a huge tariff and potentially getting towards trade embargo levels with the U.S." Optimism over easing trade tensions broadly helped push U.S. stocks to record highs last week and lifted European shares to their highest since early June. "It is odd to think that a late July week in the middle of the summer could prove to be the most pivotal of the year. It has already started with a key trade deal with a major partner," Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut, wrote in a note following the news. Investors have been bracing for increased volatility heading into August 1, which the U.S. has set as a deadline for raising levies on a broad swath of trading partners. Trump's April 2 "Liberation Day" announcement of sweeping global tariffs sent stocks plunging in the immediate aftermath, due to spiking fears about a recession that have since faded. Holger Schmieding, chief economist at Berenberg Bank in London, said of the EU-U.S. announcement: "The crippling uncertainty is largely over, the deal is bearable for the EU. Modestly good news for equity markets, that probably priced in most of it beforehand. "But of course, the outcome is still bad relative to the situation that prevailed before Trump started his trade wars." The announcement came after Von der Leyen traveled to Scotland for talks with Trump to push a hard-fought deal over the line. Von der Leyen said the 15% tariff applied "across the board," including automobiles, semiconductors and pharmaceuticals. Trump said the deal also calls for $750 billion of EU purchases of U.S. energy in coming years and "hundreds of billions of dollars" of arms purchases. "We will need to see how long the sides stick to the deal," Eric Winograd, chief economist at investment management firm AllianceBernstein, said.
The Independent
an hour ago
- The Independent
WeightWatchers boss says ‘exciting work to do' amid impact of weight loss jabs
WeightWatchers was slower to adapt to the emergence of anti-obesity jabs than rivals, its boss has admitted, as the 62-year-old brand strives to catch up with rapidly evolving attitudes towards weight loss. Tara Comonte, chief executive of the US-based business, said it had a lot of work to do after going through a 'reset'. WeightWatchers recently announced it had emerged from bankruptcy after writing off a portion of the 1.15 billion US dollar (£860 million) debt on its balance sheet. It came as the business was competing with the emergence of GLP-1s – the scientific term for weight loss jabs, which work by reducing food cravings – and a new wave of apps and advice spreading on social media. Ms Comonte told the PA news agency that it 'wasn't as quick to medical weight loss solutions' as some other firms in the US, notably so-called 'telehealth' businesses that offer healthcare remotely. WeightWatchers, which runs some 20,000 workshops each month globally, is now 'at the beginning of the journey' towards forging a new place in the industry and meeting demand from current and future members, Ms Comonte said. 'This whole industry is going through somewhat of a reset and we have exciting work to do,' she told the PA news agency. 'This is a moment where, possibly more than ever before, people are talking about weight, and weight health… where people are seeking more education than ever before, and there are more voices than ever before.' Ms Comonte said the brand was known for 'trust and science' and it was important to harness that 'as there are more and more voices in the ecosystem'. WeightWatchers recently partnered with anti-obesity drugs provider CheqUp in the UK so patients taking the medication can access its 'companion' diet and lifestyle support app. It forms part of its efforts to muscle into the market by offering behavioural strategies and community-based support to people using or coming off the medication. 'There's no 'us and them' anymore,' Ms Comonte told PA, hitting back at weight loss jabs often being pitted as rivals to its model. Dr Kim Boyde, WeightWatchers' newly appointed chief medical officer, said not all its members will want or need weight loss medication – but stressed that it was 'imperative' the programme offers it to those that might benefit. Recent estimates suggest that about 1.5 million people in the UK are taking weight loss jabs. Health officials have suggested that they can help to turn the tide on obesity, but have stressed they are not a silver bullet and do come with side effects.
