EQT AB-backed First Student Inc. has selected Goldman Sachs, Morgan Stanley, and RBC to arrange its initial public offering, according to sources familiar with the matter. This move signals the school bus operator's intent to tap public markets, leveraging the expertise of top-tier investment banks to underwrite the deal. The selection of these financial heavyweights is a critical step in the IPO process, as they will guide the company through regulatory filings, valuation, and investor roadshows.

For the student transportation industry, a successful First Student IPO could set a benchmark for valuations and attract more private capital into the sector. The backing by EQT, a major private equity firm, highlights the strategic value placed on essential infrastructure services like student transit. Investors will be watching closely for pricing details and the company's growth strategy, which could involve fleet expansion or technology upgrades.

This IPO represents a significant liquidity event for EQT and a potential new investment opportunity in the public markets.