Shares of online-dating company Bumble Inc. jumped more than 70% in their trading debut amid huge interest in matchmaking apps and new public offerings.
The Austin, Texas-based company’s stock opened Thursday at $76. Bumble’s initial public offering was priced at $43 a share, raising $2.2 billion for the company and valuing it at nearly $8 billion.
Founder Whitney Wolfe Herd started Bumble in 2014 to turn the traditional dating dynamic on its head. Bumble was created as a platform on which women make the first move. The app also has an option for users seeking same-sex interactions.
Ms. Wolfe Herd had earlier co-founded Match Group Inc.’s Tinder. The 31-year-old has said she saw the problems with archaic dating rules and sought to change them.
The Bumble parent said it plans to use most of the proceeds to pay down debt, as well as buy back shares from its pre-IPO stakeholders. Among its early backers is private-equity giant Blackstone Group Inc., which bought a majority stake in the company in 2019. Following the IPO, and assuming the full exercise of underwriters’ option to offer more shares, Blackstone’s stake is expected to shrink to about 47%, according to a prospectus.
