(Bloomberg) — Language learning app Duolingo Inc. and its investors raised $521 million in an initial public offering priced above the marketed range.
The company priced 5.1 million shares at $102 each Tuesday, according to a statement, after marketing them for $95 to $100.
Duolingo has a market value of $3.66 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Accounting for employee stock options and restricted stock units, it has a fully diluted value of more than $4.4 billion.
The Pittsburgh-based company was started by two engineers, Luis von Ahn and Severin Hacker, who will each have about 15% of the shareholder voting power in the company after the IPO, according to the filings. The two met at Carnegie Mellon University, where von Ahn was a professor in the computer science department and Hacker was a student.
Duolingo’s losses and revenue mounted during the coronavirus pandemic. It had a net loss of $13 million on revenue of $55 million for the three months ended March 31, 2021, compared with a net loss of $2.2 million on revenue of $28 million for the same period a year earlier.
The offering is being led by Goldman Sachs Group Inc. and Allen & Co. The shares are expected to begin trading Wednesday on the Nasdaq Global Select Market under the symbol DUOL.
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