Apollo-backed Phoenix Education Partners raises $136 million in US IPO

Oct 8 (Reuters) - Phoenix Education Partners, the owner of the University of Phoenix, on Wednesday priced its U.S. initial public offering within its marketed range, raising $136 million and setting up a return to public markets after more than eight years.

Apollo Global APO.N and Vistria Group, backers of Phoenix Education Partners, sold 4.25 million shares at $32 apiece, compared with its target range of $31 to $33 each. The IPO was valued at $1.14 billion.

After months of subdued activity amid market volatility tied to trade policy uncertainty, the U.S. IPO market is showing signs of revival as investors regain confidence.

But the recovery faces new pressure from the U.S. government shutdown, which has forced the SEC to scale back operations and pause IPO review activity.

Apollo, which is selling 3.55 million shares in the IPO, will retain majority voting control following the listing. The shares are expected to begin trading on the New York Stock Exchange under the ticker symbol "PXED" on October 9.

Phoenix Education's predecessor, Apollo Education Group, was taken private in 2017 in a $1.1 billion deal by a consortium that included Vistria and Apollo.

In 2023, a nonprofit affiliated with the University of Idaho agreed to buy the University of Phoenix's operations for $550 million, but the deal was abandoned earlier this year.

Founded in 1976 by John Sperling, the University of Phoenix provides online degree and certificate programs designed for working adults, focusing on career-relevant education and flexible learning options across the United States.

In 2019, the university reached a settlement with the U.S. Federal Trade Commission over allegations that it falsely advertised partnerships with major companies that could lead to jobs for students.

Morgan Stanley, Goldman Sachs, BMO Capital Markets and Jefferies were the lead underwriters for the IPO.

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