(Reuters) -The owner of the University of Phoenix is targeting a valuation of up to $1.2 billion in its U.S. initial public offering, it said on Tuesday, setting the stage for its stock market return after more than eight years.
Existing stockholders of Phoenix Education Partners are seeking up to $140.3 million by offering 4.25 million shares priced between $31 and $33 apiece.
Private capital firm Apollo Global is selling 3.55 million shares, while investment firm Vistria Group is offloading 0.7 million shares.
The IPO pickup has lately broadened out to private equity deals, with a steady stream of sponsor-backed companies hitting the new listings market in recent months.
The University of Phoenix, founded in 1976 by John Sperling, provides post-secondary education services, mainly to working adults in the U.S.
The Phoenix, Arizona-based university currently offers 72 degree-granting and 33non-degreecertificate programs across disciplines.
DROPPED SALE
Phoenix Education's predecessor, Apollo Education Group, was taken private in 2017 in a $1.1 billion deal by a consortium including Vistria and Apollo.
The university, under Apollo and Vistria's stewardship, exited non-core programs and divested some operations, including several international schools that it shared administrative resources with.
In 2023, a non-profit affiliated with the University of Idaho agreed to acquire the operations of the University of Phoenix for $550 million. But the parties walked away from the deal earlier this year.
Apollo will continue to control a majority of Phoenix Education's voting power after the offering.
Morgan Stanley, Goldman Sachs, BMO Capital Markets, and Jefferies are the lead underwriters for the offering. Phoenix Education will list on the New York Stock Exchange under the symbol "PXED".
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Anil D'Silva and Shailesh Kuber)
