Texas-based company valued at $ 14 billion USD after opening shares at USD 76, well above the IPO price of USD 43

Stocks of dating app Bumble were up more than 76% when it first launched in New York, giving the company a valuation of 14 billion USD (10 billion GBP) lends

The stock opened Thursday at $ 76 (GBP 55) on the Nasdaq, well above the $ 43 market price

Bumble, backed by private equity firm Blackstone, is one of the ranks of Snowflake, Airbnb, and DoorDash who all had strong first days when they debuted last year

Austin, Texas-based Bumble was founded in 2014 by Whitney Wolfe Herd, a co-founder of the rival app Tinder, which she left earlier this year

Wolfe Herd sued Tinder, claiming its co-founders exposed them to sexual harassment, and Tinder’s parent company, Match Group, which denied the allegations, paid about $ 1 million USD to resolve the dispute

A legal battle took place in 2018 after Bumble submitted a 450 million takeover bid from Match USD Denied Match had filed a lawsuit against Bumble for intellectual property infringement

But Bumble sued two weeks later, accusing Match of fraud and trade secret theft. Both lawsuits were dropped later that year

In 2019, Blackstone paid around 3 billion from founder Andrey Andreev USD for the acquisition of a majority stake in MagicLab, which at the time owned the Bumble and Badoo apps. Wolfe Herd was named Bumble’s chief executive officer following the deal

Great first day trading profits like those for Bumble are likely to spark criticism from some venture capitalists, including Benchmark’s Bill Gurley, who has argued that investment banks are undervaluing offers so their investor clients can make big profits on their first trade

Some investors have also urged companies to consider direct listing, where bankers have little control over the price at which the stock is sold

Bumble

World News – UK – Shares in dating app Bumble rise on first day of trading on Nasdaq

Source: https://www.theguardian.com/business/2021/feb/11/shares-in-dating-app-bumble-soar-in-first-day-of-trading-on-nasdaq