Bumble increases IPO price and issue size ahead of first date with Wall Street; Tinder stock jumps

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Dating application Bumble has increased the price of its upcoming IPO by about one-thirds ahead of its proposed listing on NASDAQ.
(Image: REUTERS)

Dating application Bumble has increased the price of its upcoming IPO by about one-thirds ahead of its proposed listing on NASDAQ. The company has also increased the size of the public issue, according to the revised terms filed with the United States Securities and Exchange Commission (SEC). Bumble now plans to sell 45 million equity shares at a price of $37-39 per share. Earlier, Bumble had said that the company would sell 35 million shares through its IPO in the price band of $28-$30 apiece.

The company could raise $1.8 billion through the public issue. Through the listing of the company’s equity shares on the bourses, Bumble plans to reduce its debt and to redeem shares from pre-IPO owners, according to the filings with the SEC. According to Bloomberg News, the IPO could hit the market this week as the dating app plans to capture a listing ahead of Valentine’s day.

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“Upon completion of this offering, we will have a total of 109,446,687 shares of our Class A common stock outstanding,” the company said in the IPO papers. “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,” they added.

Bumble recorded a revenue of $376 million between January and September 2020. During the same period, the company reported a net loss of $84 million. The company operates two apps, Bumble and Badoo, where Bumble’s contribution to the revenue generation is higher. The IPO filing reveals that Bumble had 42 million monthly active users at the end of the third quarter of 2020. Between January and September of the previous year, Bumble had 2.4 million active paying users. Operating in 150 different countries, the application generates an Average Revenue per Paying User of $26.84.

Since Bumble made its initial filing with the US capital market regulator, the share price of its rival dating application Tinder has soared 20% to now trade at $158 per share. Operating under the name Match Group on NASDAQ, Tinder’s share price continued to surge higher yesterday even though stock markets closed flat. The company announced that it has agreed to acquire Hyperconnect for US$1.725 billion in cash and stock. Hyperconnect is a leading South Korean video technology company that operates Azar and Hakuna Live applications.

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