University of Phoenix Set to Go Public: What This Means for Students and Investors

The University of Phoenix is in the spotlight again. The company that owns it has just filed for an initial public offering (IPO). This comes after a planned sale to the University of Idaho fell through just a few months ago, according to a report from Bloomberg.

The IPO could value the online university between $1.5 billion and $1.7 billion. This major move has stirred up interest because the university has faced regulatory issues in the past, including accusations of misleading and defrauding students.

The majority owner, AP VIII Queso Holdings LP, plans to change its name to Phoenix Education Partners Inc. before the public offering is finalized. Earlier this year, they had to pay the University of Idaho $12.2 million after the deal didn’t go through.

Apollo Education Group, which owned the university before AP VIII Queso, took the University of Phoenix private in 2017 for $1.1 billion. This was backed by Apollo Global Management and Vistria Group.

Interestingly, the University of Phoenix has been on the market for years. It had a potential deal with the University of Arkansas before the Idaho offer, yet that also didn’t come together.

A recent survey shows that online education remains popular, with around 75% of students preferring it for its flexibility. However, there are concerns about the quality of education at for-profit institutions. Experts suggest that as regulations tighten, for-profit universities like Phoenix may need to rethink their strategies to stay relevant.

As the IPO approaches, many are watching closely. How the University of Phoenix adapts can provide insights into the future of online education. For more detailed information, you can visit Bloomberg’s coverage here and the SEC filing here.

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