High Interest in New Tech IPOs
Similar to other startups that are looking to go public in recent months, the dating app company was forced to upgrade its IPO pricing multiple times amid high demand from investors and private equity funds. The company intends to raise $2.15 billion from the IPO at a business valuation of $8.2 billion.
“Bumble intends to use the proceeds (net of underwriting discounts) from the issuance of 9 million shares to repay a portion of its senior secured term loan facilities and for general corporate purposes, and to bear the expenses of the offering,” it is said in the official statement.
“Bumble intends to use the proceeds (net of underwriting discounts) from the issuance of 41 million shares (or 48.5 million shares if the underwriters exercise in full their option to purchase additional shares of Class A common stock) to purchase or redeem an equivalent aggregate number of outstanding equity interests from certain entities affiliated with Blackstone.”
The online dating app business initially filed to go public in January after it had announced plans to trade publicly in December. Bumble was founded by Whitney Wolfe Herd — who was also an early co-founder of Tinder — in 2014. In 2019, Bumble sold a majority stake in the company to Blackstone for around $3 billion, with Wolfe Herd receiving $125 million in proceeds from the transaction.
The initial pricing range of $28 to $30 per share was upgraded to $37 to $39 per share by the company earlier this week. Finally, the dating business now announced a new initial price before its shares go live in the IPO tomorrow morning.
The dating app company reportedly has 42 million monthly active users (MAUs) as of Q3 2020, with 2.4 million paying users through the first nine months of 2020. Over the same period, Bumble recorded revenues of $416.6 million, with net income coming at negative $116.7 million.
On an adjusted basis, the online dating app business recorded EBITDA (earnings before interest, taxes, depreciation, and amortization) of $108.3 million.
The company plans to list on the Nasdaq stock exchange under the ticker symbol “BMBL,” with Morgan Stanley and JP Morgan acting as joint book-running managers for the IPO.
Bumble, an online dating app business, has raised its IPO pricing yet again to $43 as the company aims to raise $2.15 billion on a business valuation that exceeds $8 billion.
About the Author
An analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in advanced analytics and media.