Oct 8 (Askume) – Early childhood education provider KinderCare Learning on Tuesday priced its U.S. initial public offering (IPO) within a specified range to raise $576 million.
KinderCare, backed by private equity firm Partners Group (PGHN.S), priced the offering at $24 per share, from a price range of $23 to $27, the company said in a statement .
KinderCare is valued at US$2.74 billion in the IPO.
Oregon-based KinderCare is one of the largest providers of early childhood education centers in the United States, operating more than 1,500 centers for more than 200,000 children, according to its IPO filing. The company also operates 900 before- and after-school locations in 40 states and the District of Columbia.
KinderCare reported revenue of $1.34 billion in the six months ended June 29, compared with $1.27 billion in the same period last year. The company’s net profit in the same period was $26.8 million, down from $71.7 million a year earlier, according to its recently updated IPO filing.
KinderCare said it plans to use the funds raised to pay down debt and cover expenses.
The company had first filed for an IPO in 2021 but abandoned the plan last year due to delays in regulatory approvals.
Partners Group acquired KinderCare in 2015 and will hold a 71% controlling stake in the company.
KinderCare shares are expected to begin trading on the New York Stock Exchange on Wednesday under the ticker symbol “KLC.”
Goldman Sachs, Morgan Stanley, Barclays and J.P. Morgan are acting as lead book-running managers for the offering.
