K12 aces its IPO

December 14th, 2007 | Category: Technology, Internet, Initial Public Offerings

Not that towering ago, citizens thought going to an online school was second-rate. But it’s now fitting common - and widely accepted.

For the most part, online education has been mostly for adults (especially those who already have engaged careers). But things are changing; take a look at K12 (NYSE: LRN). that online school caters to students from kindergarten through 12th grade.

K12 went public that week, spiking 36% to $25.55 in its shares’ first day of trading.

The company’s platform is fairly sophisticated, which is the outcome of more than $100 million in curriculum and technology investments. There are more than 11,000 lessons, which employ things like Flash animations, real-time feedback and so on.

From 2004 to 2007, enrollments went from 11,000 to 27,000 and revenues increased from $71.4 million

to $140.6 million (which is a compound annual growth rate of about 25%). K12 makes money primarily from contracts with public schools.

One of K12’s major shareholders is Mike Milken, who was the “junk bond” king of the 1980s.

The lead underwriters on the IPO included Morgan Stanley (NYSE: MS) and Credit Suisse (NYSE: CS).

You can find the prospectus at the SEC website. plus, whether you want to find other recent IPO info, visit DealProfiles.com.

Tom Taulli is the author of various books, including The total M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.