(Bloomberg) — Online language learning company Babbel Group AG and some of its backers are seeking to raise as much as 316 million euros ($374 million) in a Frankfurt initial public offering.
The Berlin-based company is marketing 7.3 million new shares at 24 euros to 28 euros apiece, while some of its existing investors are offering 4 million shares, according to a statement Wednesday.
The company would be worth 1.27 billion euros if demand pushes the stock to the top end of the IPO price range. The shares are expected to begin trading on Sept. 24.
Babbel will use the proceeds to expand the business after the pandemic drove more users to its platform. Sales grew 18% to 83 million euros in the first half of the year.
“The step change that has occurred in digital language learning over the last year opens up a massive opportunity set,” Chief Financial Officer Hermione McKee said in an interview.
Babbel has raised 28 million euros from investors as a private company, with its last fundraising in 2015. Competitor Duolingo Inc.’s shares have risen by 57% since it went public in the U.S. earlier this year.
(Updates with more details of IPO from first paragraph)
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