Udemy Inc. raised $421 million in its initial public offering. The Education Technology company offered shares to the public at the top of the marketed range as per sources close to Udemy.
As per Bloomberg news, Udemy had marketed shares in the range of $27 and $29 but closed the IPO of 14.5 million shares at $29 on Thursday.
The information is still not public yet, and a request for comment from the Udemy representative elicited no response.
Priced at $29 per share would give Udemy a market capitalization of $4 billion approx. It is based on its filing with the U.S. Securities and Exchange Commission for listing the number of outstanding shares. If the employee stock option is accounted for, Udemy will have a fully diluted market valued at more than $4.5 billion.
According to Pitchbook, a data provider, the company had a valuation of $ 3.3 billion during a private investment in 2020.
Stake of Insights Partners
Insight Partners and its affiliates will own about 30% of Udemy’s shares, making it the largest investor after listing. As per the filings, Norwest Venture Partners and MIH Edtech Investments, a unit of Prosus NV, are the other top shareholders.
Udemy’s Earnings
The first six months’ revenue was $251 million compared to $201 million for the same period in the previous year. The net loss was $29 million, down from $52 million reports last year.
Udemy is known for providing online video courses in various categories that include web development, business, and marketing.
Udemy has informed that it has 44 million users globally. In 2020 it had more than 201 million course enrolments. Udemy’s corporate clients include Citigroup Inc., PayPal Holdings Inc, Jaguar Land Rover, and Box Inc.
In the prospectus of the IPO, Udemy acknowledged the risk factors regarding the highly competitive market that has competition from players like LinkedIn Learning, Pluralsight Inc., and Coursera Inc.
The Lead Managers of the IPO were Morgan Stanley and JP Morgan Chase & Co. Udemy’s shares are expected to trade from Friday under the symbol UDMY on Nasdaq Global select market.
