Tinder’s parent company, Match Group, said it would set its initial public offering price at $12 to $14 a share, valuing the company at roughly $3.1 billion.
The company plans to sell 33.3 million shares, which would raise $466 million. If underwriters exercise their 5 million additional shares the company stands to raise $498 million.
The IPO is part of parent company IAC/InterActiveCorp’s plan to spin off its dating division, which includes West Hollywood’s Tinder. Other Match Group holdings include dating companies Match.com, OkCupid, Plentyoffish Media Inc. and Chemistry.com.
Match Group of Dallas had revenue of $1.1 billion and net income of $117 million in the 12 months ended Sept. 30, according to its most recent S-1 filing. Its 2014 revenue totaled $888 million. Meanwhile, the company has $185 million in long-term debt and $283 million in cash and cash equivalents.
Tinder’s revenue and costs were not disclosed in the filing. The app started charging $10 a month for premium features in March, but otherwise is free to use. The majority of Match Group’s revenue is generated from monthly subscriptions to its other sites. Match believes it could sell significantly more advertising on Tinder.
“Part of our strategy is to meaningfully increase the sell-through at our Tinder brand, which is currently below 2 percent of available ad inventory,” the filing stated.
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