Online education company 3p Learning is going public, setting its price at $2.50 per share, offering 135 million shares to current and new investors in an IPO.
The company is hoping to raise $300 million to help bring its product into more schools across the globe, as more districts are dropping the standard textbook for online learning. 3p Learning is currently used in 17,000 schools worldwide, write James Hutchinson and Misa Han for Business Review Weekly.
Approximately 79% of the company’s revenue is created by the sales of its Mathletics software, which is currently in use in some 50% of Australian schools. The software is an online learning program that offers students rewards, certificates, and online gaming to keep interest and motivation high, helping to create and instill a love of learning.
The program offers more than 1,200 activities to coincide with international curricula, complete with tests for each unit. The program offers teachers easy assessment, allowing for a more in-depth and personalized plan for each student.
The most popular part of the software is Live Mathletics, where students can “race” against others from their own class, or around the world to see how much they know.
And yes, there is an app for that.
The company is also hoping to cross-sell its software for other topics, such as spelling, reading, and science to schools who already hold a license for the Mathletics program. License holding schools have grown 54% each year from 2010-2013, in the UK, the US, and Canada, according to Maggie Lu Yueyang for The Herald Sun.
According to its website, 3p Learning uses earnings from Mathletics to power its work with UNICEF.
Within the Live Mathletics area, students can challenge each other to 60 second mental arithmetic races. Each time they do so, they will earn Connector Points. Every time 2 million Connector Points have been earned by students globally, we will add a piece to our jigsaw puzzle of a school – displayed in the Mathletics student interface. When all 12 pieces of the puzzle are in place, Mathletics will fund the building of a brand new school in a UNICEF-supported part of the world. The more connections made, the more schools we will build.
So far, 3p Learning has been able to help 100,000 students in UNICEF-supported areas by supplying them educational tools needed to succeed.
IPOs are usually a bit of a gamble for companies whose presence is solely online, as common laws of supply and demand seldom fit and the price of shares can fluctuate dramatically when a company hits the open market. Even mighty Facebook, which was valuated as high as $45 by some in the days before it went public in the late spring of 2012 struggled out of the gate, with its stock price dropping from $38 at opening to $27.72 nine days later.