Sumary of Babbel opens Germany’s autumn IPOs with $1.5 bln valuation target:
- By Alexander Hübner3 Min ReadMUNICH, Sept 15 (Reuters) – Language learning app Babbel hopes to join the ranks of ‘unicorn’ tech startups with a market valuation of around $1.5 billion when it opens the German autumn listing season.
- Babbel said on Wednesday it would sell its shares at 24 to 28 euros to give the business, founded in Berlin in 2007, an equity value of up to 1.26 billion euros ($1.5 billion).
- At the top end of the range, the Frankfurt IPO would value Babbel at a multiple of more than 8 times its revenue last year.
- Of proceeds from the IPO of up to 364 million euros, at most 204 million euros could accrue to Babbel through the sale of new shares, with existing shareholders accounting for the rest.
- “The positive feedback and interest from investors show us that we are pursuing the IPO at the right time,” Babbel Chief Executive Arne Schepker said in a statement.
- Babbel offers lessons in 15 languages on a subscription-based smartphone app, featuring comprehension and speaking drills.