Match Group to raise up to $536m in New York IPO after online dating company sets share price range
The online dating company behind Tinder expects to be valued at more than $3bn (£2bn) when it lists in New York.
Match Group, which owns the wildly-popular dating app as well as dozens of other services including OkCupid, Match.com and PlentyOfFish, could raise up to $536m for media giant IAC/InterActive, which is floating a stake in the company to pay off debt.
Online dating, particularly on smartphone apps, has exploded in recent years. Match has grown from 11m monthly users four years ago to 59m today, with paying users doubling to 4.7m. It claims to have three of the world’s five most lucrative dating apps.
On Monday, Match said it expects to sell 33.3m shares at between $12 and $14, as well as an option to sell another 5m to underwriters. This would value it at between $2.9bn and $3.4bn.
IAC, run by American mogul Barry Diller, owns dozens of internet and media brands, including, Vimeo and , although Match is its most valuable property. It will continue to own more than 84pc immediately after the listing, and a dual-share structure will give it 98pc control of shareholder votes.
Photo: Match Group
Tinder, a mobile-only service that connects with users’ Facebook accounts and is especially popular among “millennial” 18-34 year-olds, is used by almost 10m people every day, who spend an average of 35 minutes on the app per day.
The app, which lets users “swipe right” on a person’s profile to indicate interest, matching them if the interest is mutual, introduced a paid-for version earlier this year.
While the majority of users do not pay for the app, Tinder has started to introduce advertising, with the 145 profiles that users swipe through a day presenting opportunities to grab marketing spending.