Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Houghton Mifflin Jumps in Debut After Book Publisher’s IPO

Nov. 14 (Bloomberg) -- Houghton Mifflin Harcourt Co., the educational book publisher backed by hedge-fund manager John Paulson, surged in its trading debut after pricing its initial public offering below the marketed range.

The stock jumped 32 percent to $15.86 in New York today, giving the Boston-based company a market value of $2.2 billion. The shares were priced at $12 apiece yesterday in the IPO, compared with an initial range of $14 to $16.

“We are very excited about where the stock is trading,” Linda Zecher, Houghton Mifflin’s chief executive officer, said today in an interview. “It’s a great time for the company to take our brand and have a broader recognition.”

Houghton Mifflin emerged from bankruptcy in June of last year, issuing all of its outstanding common stock to lenders in exchange for canceling its secured debt. These shareholders, including Paulson & Co., Avenue Capital Group and BlackRock Inc., raised $219 million selling a 13 percent stake and will receive all the proceeds from the IPO.

The publisher, whose trade segment was established in 1832, is the leading provider in the U.S. of kindergarten through 12th-grade educational content by market share, according to the company’s prospectus. The education segment, its largest business, accounted for 88 percent of sales last year. Houghton’s trade segment includes authors and titles such as J.R.R. Tolkien, “Curious George” and “Life of Pi.”

Goldman Sachs Group Inc. and Morgan Stanley managed the offering. The shares are listed on the Nasdaq Stock Market under the symbol HMHC.

To contact the reporter on this story: Alex Barinka in New York at abarinka2@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.