I am positive on KinderCare due to the strong secular demand for early childhood education and KLC's leading market position. KLC is poised for future growth through center openings, occupancy rate improvements, pricing power, and value-accretive M&A activities. Potential risks include changes in government policies affecting early childhood education funding, particularly impacting lower-income families.
KinderCare Learning Companies, Inc. went public recently, but high earnings multiples and reliance on pandemic-related subsidies make me cautious. Despite solid growth and a large market, KinderCare's operating income is modest due to labor costs and even inflated by COVID-19 subsidies. The company's valuation is demanding, with significant leverage and earnings likely to decline in 2024 amid margin pressures.
Four IPOs each raised at least $75 million this week as the Fall IPO market continued to hum along, while one company postponed its deal. Three small IPOs submitted initial filings this past week - Vantage, Youxin Technology and TEN Holdings. After a fairly active two weeks by 2024's standards, the US IPO market should slow down in the week ahead, partly due to the Monday holiday.
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).
At a time when the rising cost of childcare is a big topic of discussion in Washington politics, one company is betting that more investors will want a piece of the action on Wall Street.
Paul Thompson, KinderCare president and CEO, joins 'Money Movers' to discuss why now is the time for the company to become public, what's driving the company's growth, and much more.
Tony Amandi, CFO of KinderCare, joins Nicole Petallides at the NYSE to talk about the company just before it began to trade publicly today. He says headwinds for the company are light with the IPO process out of the way, adding that lower rates "got to help" with KinderCare's growth.
The U.S. initial public offering market is expected to welcome nine deals this week to raise about $1.4 billion, anchored by kindergarten operator KinderCare Learnings Cos. Inc. and Brazilian company Moove Lubricants Holdings.
KinderCare Learning Companies, Inc.'s IPO has filed proposed terms to raise $600 million in a U.S. IPO. The firm's financials show declining operating profit, lower margins, and significantly reduced cash flow. The early childhood education market is growing, but KinderCare faces risks from rising labor costs and reduced government subsidies.
KinderCare, which describes itself as the largest provider of community-based early childhood education centers in the United States by center capacity, plans to offer 24 million shares at an estimated price range of $23 to $27 a share.
KinderCare vies to tap the equity markets again and listed earnings of 4 cents a share on revenue of $1.34 billion in the six months to June.