On December 18, 2020 Bumble, the #2 after Tinder dating app with 100M users (40M active users) where women make the first move, has filed confidentially IPO documents, according to people familiar with the matter. Bumble is targeting a valuation of more than $7 billion when it goes public.
🚀 BMBL shares are already available for trading via Tradernet and eToro platforms.
- The company’s stock began trading up nearly 77% at $76 per share.
- Detailed instructions how to participate in an IPOs like Bumble IPO (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank to come in and underwrite the IPO (in Bumble case Goldman Sachs, Citigroup, Morgan Stanley, JP Morgan, Jefferies, RBC Capital, Evercore ISI). The underwriters also perform due diligence and verify financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters help sets an initial price and date for the stock to begin trading on a stock exchange.
Financial Indicators before Bumble IPO
Bumble has two applications - Bumble and Badoo with 40M active users across them, a growing paid subscriber base, and roughly a $500M annual revenue run rate that is also generating positive adjusted EBITDA. Total paid users grew 19% y/y to 2.44 million, with the Bumble app indexing at a faster 30% y/y growth rate versus 11% y/y growth for Badoo. As previously mentioned, propensity to pay is also higher among Bumble users, with ARPU of $25.72 more than double that of paid Badoo users. However, that ARPU has been trending slightly downward, with total ARPU of 18.48 down -4% y/y. This likely has something to do with the pandemic, with a number of new users coming into the service and trying it out, but having less overall retention and choosing cheaper packages.
How to Buy Bumble Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Bumble IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Bumble shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in IPOs like Bumble IPO before public trading:
Below we share the instruction how to participate in the approaching Bumble IPO using Freedom Finance (Tradernet platform). This marketplace is chosen as an example because Bumble is already listed and available for participation. The minimum investment amount is $2,000
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- Wait for a request to participate in the IPO — a few days before IPO date you will get a notification (email and SMS text message) from Freedom Finance. You will have about 48 hours to apply for the IPO.
- Submit a request to participate in the IPO — when you get a notification that you can apply to buy shares, go to IPO section of the platform > you will see the IPO listing with the share price set by the underwriter > click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start— a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
When is the Bumble IPO date
10 February, 2021
What is Bumble IPO price range?
UPD: $37.00 - $39.00 per share.
The IPO was previously priced at between $28 to $30 per share.
Instruction How to Invest in Bumble after the IPO date (opening price)?
After the IPO you can buy Bumble stocks via Tradernet on the first trading day. Or if you're from US use a commission-free trading app like eToro
What is the Bumble (stock symbol)
The stock ticker for Bumble will be BMBL
Bumble Registration Statement on Form S-1
Bumble Registration Statement on Form S-1
Key Facts before Bumble IPO
- IPO Date: Wednesday, February 10
- Exchange: NASDAQ (trading as BMBL)
- IPO Size: $1B
- Market Cap: $5.50B
- Starting Price: $28.00 to $30.00
- Underwriters: Goldman Sachs, Citigroup, Morgan Stanley, JP Morgan, Jefferies, RBC Capital, Evercore ISI
Bumble IPO News
- Feb 8, 2021 – Bumble raises the size of its IPO offering to 45 million shares, now expects to raise $1.8 billion
IPO Calendar 2021
Sources used: Bloomberg, The Street