Duolingo plans over $ 3 billion valuation when it IPO in the US as e-learning booms

0

A woman with her smartphone poses in front of the Duolingo logo displayed in this illustration taken on June 29, 2021. REUTERS / Dado Ruvic / Illustration

July 19 (Reuters) – Duolingo Inc said on Monday it was targeting a value of $ 3.41 billion in its initial public offering in the United States, as the language learning app maker looks to capitalize on of the growing interest in online education tools during the COVID -19 pandemic.

About 5.1 million shares will be offered at the IPO, priced between $ 85 and $ 95 each, which would net more than $ 485 million at the top of that range.

On a fully diluted basis, which includes securities such as stock options and restricted stock units, Duolingo would be valued at $ 4.38 billion at maximum price.

Almost 1.4 million shares will be offered by selling shareholders, the proceeds of which will not go to the company.

Duolingo has around 40 million monthly active users learning 40 languages, including Irish and Hawaiian, for which the company says there are more learners online than native speakers.

The Pittsburgh-based company said earlier that it had more than doubled its revenue in the first quarter of this year, of which 72% came from subscriptions and nearly 17% from advertising.

With over 500 million downloads, its app is the top-grossing in the education category on both Google Play and Apple’s App Store.

The company was founded in 2011 by Luis von Ahn and Severin Hacker, who met at Carnegie Mellon University when von Ahn was professor of computer science and Hacker, his doctoral student.

Duolingo was valued at $ 2.4 billion after an investment from Durable Capital Partners and General Atlantic in November.

Goldman Sachs & Co and Allen & Company are the main underwriters of the IPO. The company plans to start trading on the Nasdaq under the symbol “DUOL”.

Reporting by Niket Nishant in Bengaluru and Echo Wang in North Carolina; Edited by Ramakrishnan M.

Our standards: Thomson Reuters Trust Principles.


Source link

Share.

About Author

Leave A Reply