KinderCare Learning, a provider of early childhood education, on Tuesday priced its U.S. initial public offering (IPO) within its indicated range to raise $576 million.
The company, which is backed by private equity firm Partners Group, priced its offering at $24 apiece, within its target range of $23 to $27, KinderCare said in a statement.
The IPO values KinderCare at $2.74 billion on a non-diluted basis.
Oregon-based KinderCare, one of the largest providers of early childhood education centers in the U.S., operates more than 1,500 centers with a capacity of more than 200,000 children, according to its IPO filing. The company also runs 900 before-and-after school sites across 40 states and the District of Columbia.
During the six months ended June 29, KinderCare posted revenue of $1.34 billion, compared with $1.27 billion during the same period a year earlier. It reported a net profit of $26.8 million during the same period, down from $71.7 million a year earlier, according to its most recently updated IPO filing.
KinderCare said it plans to use the funds raised to pay off debt and cover expenses.
The company first filed for an IPO in 2021, but abandoned the plans last year, citing delays with regulatory approvals.
Partners Group, which will own a controlling stake of 71% in the company, acquired KinderCare in 2015.
KinderCare’s shares are expected to start trading on the New York Stock Exchange under the ticker “KLC” on Wednesday.
Goldman Sachs, Morgan Stanley, Barclays and J.P. Morgan are acting as lead bookrunning managers for the offering.
Reuters
