Blackstone affiliates are going to sell approximately 15 million Bumble shares in an underwritten public offering.
Investors are looking to take advantage of Bumble’s positive position on the market, as it’s currently trading around 30% higher from its IPO price of $43.
However, more than $850 million worth of shares going on sale has had a short-term negative impact on its price. Bumble stock finished yesterday’s trading 3.3% lower, following the announcement on Tuesday evening.
Underwriters have been given 30 days to buy an additional 2.25 million shares if they so wish. After that, all proceeds will go to the selling parties. The online dating company isn’t intending to sell any of its shares and therefore won’t receive any financial benefits.
The news came just after an announcement was made that Match Group was joining the prestigious S&P 500 index, marking it as one of the biggest publicly traded US companies. Its share price is up by almost 7% over the past week.
Bumble comprehensively beat analyst estimates in the second quarter of 2021. Its total revenue grew year-on-year by 38% which led to the company improving its full year outlook.
This was largely due to a 20% increase in paying subscribers to 2.9 million, with a fairly even split between Bumble and Badoo.
At the end of last week, Whitney Wolfe Herd and Shar Dubey spoke out against the new Texas abortion law, which would prevent pregnancies from being terminated after six weeks. Both CEOs set up relief funds to support their employees and women in the community.
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