KinderCare Learning Stock Soars in Trading Debut

By
Bill McColl
Bill McColl
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Published October 09, 2024
02:09 PM EDT
KinderCare Learning Center, TriBeCa, New York City

Plexi Images / GHI / UCG / Universal Images Group via Getty Images

Key Takeaways

  • KinderCare Learning Companies shares surged Wednesday in their trading debut after the operator of child-care centers raised $576 million in an initial public offering.
  • The IPO price of $24 was near the low end of the company's anticipated $23 to $27 price.
  • KinderCare said it will use the proceeds to pay off debt and expenses.

Shares of KinderCare Learning Companies (KLC) surged on their first day of trading Wednesday after the firm raised $576 million in an initial public offering (IPO).

The operator of child-care centers announced Tuesday night that it had sold 24 million shares at $24 each, near the low end of its estimated range of $23 to $27 per share. In addition, the underwriters have a 30-day option to purchase an additional 3.6 million shares at the IPO price.

Shares recently were trading up more than 9% at $26.25.

The company noted that it would use the money "to repay amounts outstanding under its existing indebtedness and pay expenses." In an earlier regulatory filing, KinderCare said it had $548.4 million in loans outstanding and $7.3 million in other expenses.

In the same filing, it reported it had revenue of $2.5 billion in fiscal 2023, and net income of $102.6 million. 

KinderCare Previously Attempted To Go Public in 2021

This was the second attempt by the company to go public. It abruptly pulled its planned IPO in November 2021, citing "regulatory delays."

KinderCare Learning Companies are trading on the New York Stock Exchange (NYSE) under the ticker symbol "KLC."

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  1. Securities and Exchange Commission. "AMENDMENT NO. 2 TO FORM S-1 REGISTRATION STATEMENT."

  2. KinderCare Learning Companies. “KinderCare Announces Prices of Initial Public Offering.”

  3. KinderCare Learning Companies. “AMENDMENT NO. 2 TO FORM S-1 REGISTRATION STATEMENT.”

  4. The Wall Street Journal.  “KinderCare Postpones IPO Citing Regulatory Issues.”

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