Austin-based dating app Bumble, which filed paperwork to go public last month, says it now expects to raise more than $1 billion with its initial public offering of stock, according to an updated securities filing.
The company first filed a registration statement with the U.S. Securities and Exchange Commission in January. The original filing estimated that the IPO could raise $100 million. The company plans to list on the Nasdaq exchange using the symbol “BMBL.”
The updated filing also gives the first glimpse into the price range and valuation. The filing said the company expects to sell about 34.5 million shares for $28 to $30 each,. Factoring in the value of existing shareholders, the company’s estimated valuation would be between $5 billion to $6 billion.
By comparison, competitor Match Group, which is the parent company of a number of dating platforms including Match.com, Tinder, Plenty of Fish, Hinge and OkCupid, was valued at about $2.9 billion when it pursued its IPO in 2015.
Citing sources with knowledge of the matter, Bloomberg reported this week that Bumble is planning to begin trading on Feb 11, the Thursday before Valentine’s day. The company did not respond to a request for confirmation on the timing.
In September, media reports surfaced that Bumble could be preparing for an IPO this year. The reports suggested the company could seek a valuation between $6 billion and $8 billion. In 2018, CEO and founder Whitney Wolfe Herd also told CNBC that the company was outpacing growth expectations and “actively pursuing” an initial public offering of stock.
Bumble functions similarly to other apps like Tinder where users swipe left or right on preferences. The app, which has more than 100 million registered users, however, only allows women to initiate a conversation or contact.
Wolfe Herd founded Bumble in 2014 after previously working at Tinder. The company operates two apps, Bumble and Badoo, which have over 40 million users on a monthly basis. The business started as a dating app and has since expanded into a women-centric social networking platform that includes friend and business networking options, including Bumble BFF and Bumble Biz.
The app generates revenue through a subscription model, which also has free features and charges for additional services.
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In the securities filing, Wolfe Herde said Bumble has the potential to become a “preeminent global woman’s brand” and a place to meet new people “no matter who you might be looking for, whichever life stage or relationship you’re in.”
The filing estimated as of September, the apps have 2.4 million paying users in more than 150 countries, according to the securities filing. The company also said it has 42 million monthly active users as of the third quarter of 2020.
“While we are proud of how far we have come, having grown from a community of just a few people to an IPO, today is just day one. This marks the start of a very bright future for Bumble Inc, one we believe will change lives and drive great value for our shareholders,” Wolfe Herd said in the securities filing. “Our mission, values, commitment to improving relationships globally, and dedication to our communities will continue to fuel us for the long run.”
Wolfe Herde will also be one of few female founders in history to take a company public. Fewer than two dozen companies that were led and founded by a woman have gone public since the New York Stock Exchange was founded in 1817.
Blackstone Group, a private equity giant, has owned a majority stake in Bumble, and the parent company of the same name, since 2019. The deal valued the company at about $3 billion at the time.
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The IPO filing said Wolfe Herd will own about 11% of outstanding interests in Bumble and 14% of the voting power. It also estimated Blackstone will own about 67% of the outstanding economic interests in Bumble and 83% of the outstanding voting power.
The filing also gives the first glimpse into the company’s revenue. Wolfe Herde previously said the company was profitable since its second year. In the first nine months of 2020, Bumble had revenue of $376.6 million, with the company reporting a net loss of $84.1 million. In the first nine months of 2019, the company reported revenue of $362.6 million with a reported profit of $68.6 million. In total for 2019, the company reported $488.9 million in revenue.
The company’s move to go public follows an explosive year for initial public offerings in 2020. Companies had the biggest IPO capital raising activity in a decade, according to a report from law firm Baker Mckenzie. Technology companies alone raised $55 billion last year in 257 listings worldwide.
The report said that IPO volume and values are continuing to grow because of a trend of mega deals, or IPOs valued at over $1 billion. Bumble could fall into this category if it is successful in reaching its estimated values.
In January software vendor financial technology company Qualtric raised $1.55 billion with an initial public offering, and Affirm Holdings raised $1.2 billion, and solar-power company Shoals Technology Group raised $1.93 billion. In December AirBnB raised $3.5 billion, and DoorDash raised $3.4 billion in initial public offerings in some of the largest initial public offerings of 2020.
This article originally appeared on Austin American-Statesman: Austin’s Bumble expects to raise $1 billion with stock offering