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KinderCare Learning Companies to offer 24 Mln shares for $23-27 in US IPO

In 2024, the IPO market shifted to recovery mode, with a significant increase in activity compared to last year when it witnessed a slowdown. Encouraged by the booming stock market and economic recovery, businesses across all industries are jumping on the IPO bandwagon. KinderCare Learning Companies, Inc., a provider of child-care and early childhood education […]

October 4, 2024 2 min read

In 2024, the IPO market shifted to recovery mode, with a significant increase in activity compared to last year when it witnessed a slowdown. Encouraged by the booming stock market and economic recovery, businesses across all industries are jumping on the IPO bandwagon. KinderCare Learning Companies, Inc., a provider of child-care and early childhood education […]

· October 4, 2024

In 2024, the IPO market shifted to recovery mode, with a significant increase in activity compared to last year when it witnessed a slowdown. Encouraged by the booming stock market and economic recovery, businesses across all industries are jumping on the IPO bandwagon.

KinderCare Learning Companies, Inc., a provider of child-care and early childhood education facilities, is the latest among the Wall Street firms looking to go public. The company has revealed plans to offer 24 million shares at an estimated price range of $23 per share to $27 per share, seeking to raise up-to $648 million. With an estimated 114.37 million shares outstanding after the offering, the IPO is expected to value KinderCare at up to $3.1 billion.

To List on NYSE

The company, which is supported by the Partners Group, has applied to be listed on the New York Stock Exchange under the symbol KLC. The group of underwriters is led by Goldman Sachs, Morgan Stanley, Barclays, and JP Morgan. The management will use the proceeds from the offering to repay $548.4 million of outstanding loans and to pay $7.3 million of other expenses.

KinderCare is one of the largest providers of early childhood education in the US. With a footprint of more than 1,500 early childhood education centers, the company serves children in the age groups of six weeks to 12 years. Founded in 1969, KinderCare was acquired by Partners Group in 2015.

Key Numbers

In the six months ended June 29, 2024, the company’s revenues increased to $1.34 billion from $1.27 billion a year earlier. It reported net income of $26.78 million or $0.04 per share for the six months, compared to $71.70 million or $0.09 per share in the same period last year.

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Total comprehensive income was $34.9 million in the first half, sharply lower than the $74.18 million reported in 2023. Adjusted EBITDA increased to $160.8 million from $146.5 million last year.

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