Bumble Increase Its IPO Issue Size and Pricing Eyeing $7B in Valuations

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by Bhushan Akolkar · 3 min read
Bumble Increase Its IPO Issue Size and Pricing Eyeing $7B in Valuations
Photo: Bumble

In its revised proposition submitted to the SEC, Bumble is planning to sell nearly 45 million equity shares for $37-$39 per share. The dating app is used in 150 countries worldwide with 42 million monthly active users.

On Monday, February 8, popular dating app Bumble Inc increased its IPO issue size and offer price and is now looking for a valuation of $7 billion as it heads for a stock market debut. The eponymous dating app registered $376 million in revenues in the period last year between January and September 2020.

Ahead of its proposed listing on Nasdaq, Bumble has introduced some fundamental changes. In its revised submission with the US SEC, the company increased the size of its public issue. Also, it has increased the price of its upcoming IPO by one-third. As per the revised proposition, Bumble is planning to sell nearly 45 million equity shares for $37-$39 per share. Previously, Bumble planned to sell 35 million shares in the price band between $28-$30.

With the revised plans, the company is planning to raise around $1.8 billion. As per Bloomberg News, the IPO can come to the market this week as Bumble is seeking a listing ahead of Valentine’s Day. With these funds raised, Bumble plans to reduce its debt and redeem the shares from pre-IP owners. The company’s IPO papers note:

“Upon completion of this offering, we will have a total of 109,446,687 shares of our Class A common stock outstanding. In addition, 45,136,782 shares of Class A common stock may be granted under our Omnibus Incentive Plan, including shares of Class A common stock issuable following vesting and upon exchange for 10,623,013 as-converted Incentive Units held by the Continuing Incentive Unitholders with a weighted average participation threshold of $12.32 per unit”.

Bumble Joins the Booming IPO Market

Last year in 2020, the IPO market and the US stock market saw unprecedented growth. Companies raised a record $168 billion in 2020 through IPOs. The 7-year-old dating company filed for an IPO for the first time last year. Blackstone is a majority stakeholder in Bumble.

The company is planning for a Nasdaq listing soon with the ticker symbol “BMBL”. The company is currently operating two apps – Bumble and Badoo. Here’s Bumble has a majority contribution to the company’s total revenue. Bumble has gained traction in the market with a unique proposition of letting females make the first move.

By the end of the third quarter, Bumble has 42 million monthly active users. Of these, nearly 2.4 million were active paying users. This application is available in 150 countries worldwide with average revenue of $26.51 per user. Bumble’s public listing announcement has helped rival company Tinder. Tinder stock (MTCH) surged 20% and is currently trading at $162 levels.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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