It’s been a busy time for the education sector in the Brazilian stock market. In less than a week, two large groups of private universities have filed for initial public offerings, which together could raise as much as R$1.6 billion (US$730 million). But there’s more action than IPOs. This year, three mergers and acquisitions of major education companies also shook up the sector, which is making big bets on online distance learning.
It has been a busy time for the education sector in the Brazilian stock market. In less than a week, two large groups of private universities have filed for initial public offerings, or IPOs, which together could raise as much as R$1.6 billion (US$740 million). This year, three mergers and acquisitions of major education companies also shook up the sector, which is making big bets on online distance learning, writes Patricia Gomes for edSurge.
A growing number of Brazilians are willing to pay to get an education, and for-profit schools, both local and international, are rushing to oblige them.
Profit-making in higher education engages controversial issues and debates involving the proper bounds of market activity. While it is widely recognised that many non-profit institutions engage in profit-making, this article deals with those institutions that are legally allowed to distribute revenues among shareholders and specifically focuses on Brazil – one of the world’s largest higher education for-profit sub-sectors.
Anhanguera Educacional Participacoes SA (AEDU3), Brazil’s largest for-profit university, and its two biggest Brazilian competitors are beating global peers after student loans tripled when the government reduced interest rates and made repayment easier.