(Reuters) - McGraw-Hill Education Inc, one of the big three educational publishers, on Friday filed with U.S. regulators for an initial public offering of common stock.
The company, owned by private equity firm Apollo Global Management LLC (APO.N), did not name the underwriters for the IPO in its filing with the U.S. Securities and Exchange Commission.
Reuters reported earlier this week that McGraw-Hill Education has hired Credit Suisse Group AG and Morgan Stanley to lead the IPO, expected to value the company at between $5 billion and $6 billion, including debt.
McGraw-Hill Education sells textbooks for school and university students and professionals in about 60 languages.
It competes with Pearson Plc (PSON.L) and Cengage Learning Inc, and, like its rivals, has sought to make most of its content available on the Internet as more people read on their tablets and phones.
The global e-Learning market is expected to grow to $131 billion by 2019 from $74 billion in 2015, according to Technavio, a technology research firm.
About 70 percent of students in higher education used digital course materials, according to a survey by Book Industry Study Group.
McGraw-Hill Education increased annual digital learning spending by about 67 percent in two years to $150 million in 2014, with an investment in excess of $175 million expected in 2015.
During the six months ended June 30, more than half the adjusted revenue from its higher education unit was derived from digital learning business.
Apollo acquired the business from McGraw-Hill Cos in March 2013 for $2.4 billion. Since then, Apollo has increased the company’s profit, cut costs and expanded its digital offerings.
McGraw-Hill Education is headed by David Levin, who previously led London-headquartered multinational media company UBM Plc (UBM.L).
Loss attributable to McGraw-Hill Education widened to $330.7 million in the year ended Dec. 31 from $169.8 million a year earlier. However, revenue rose to $1.86 billion from $1.59 billion.
The New York-based company said on Friday it intends to list its common stock under the symbol “MHED”, but did not specify which exchange it would list on.
The company set a nominal fundraising target of $100 million. The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.
Reporting By Sudarshan Varadhan in Bengaluru; Editing by Savio D'Souza and Maju Samuel