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Investor Alert

Oct. 20, 2021, 6:34 a.m. EDT

Online-learning platform Udemy to offer 14.5 million shares in IPO priced at $27 to $29 each

Online-learning platform Udemy Inc. (NAS:UDMY) set terms for its initial public offering on Wednesday, with plans to offer 14.5 million shares priced at $27 to $29 each. The company would raise $420.5 million at the top of that range at a valuation of almost $4 billion, based on the 137.4 million shares expected to be outstanding after the deal closes. The company has applied to list on Nasdaq, under the ticker "UDMY." Morgan Stanley and JP Morgan are lead underwriters in a syndicate of 11 banks. Proceeds of the deal will be used for general corporate purposes and working capital, although it will also be open to acquiring or investment in businesses or technologies. The company had a net loss of $29.4 million in the six months ended June 30, narrower than the loss of $52.5 million posted in the year-earlier period. Revenue rose to $250.6 million from $201.4 million. "Udemy operates a two-sided marketplace where our instructors develop content to meet learner demand," the company says in its filing documents. "Courses can be accessed through our direct-to-consumer or Udemy Business, or UB, offerings. Our platform provides over 44 million learners with access to over 183,000 courses in 75 languages and over 180 countries." The deal comes as the Renaissance IPO ETF (PSE:IPO) has gained 6% in the year to date, while the S&P 500 (S&P:SPX) has gained 20%.

Link to MarketWatch's Slice.