Today, investors have yet another initial public offering (IPO) on their radars. This time, the upcoming Udemy IPO is top of mind for many investors.
Udemy is an online education marketplace company that has taken off during the pandemic. This company’s self-directed learning platform has become a treasure trove of information for those looking to be educated in a range of skills and disciplines. This sort of direct-to-consumer offering of education has become more attainable for the working class. Accordingly, it’s expected Udemy is likely to raise some significant money as a result of this IPO.
In fact, the online education marketplace is seeking to raise $406 million as a result of this IPO. This initial public offering is expected to value Udemy at $4.3 billion, fully diluted.
Accordingly, for investors interested in this upcoming IPO, let’s dive into a few details.
What to Know About the Upcoming Udemy IPO
Udemy announced its initial pricing expectations for its IPO this past week. According to the company’s initial filings, it’s expected UDMY stock will trade on the Nasdaq beginning this Friday, Oct. 29.
The company expects to sell 14.5 million shares at $27 to $29 apiece. At the higher end of the range, Udemy could raise more than $420 million as a result of this IPO.
Final pricing has not yet been announced. However, Udemy’s previous valuation at its most recent funding round in late 2020 was $3.32 billion. Accordingly, this IPO implies a 22% premium to last year’s funding round.
Currently, it appears investor demand for this IPO is strong. The company’s unique business model and significant market share (44 million learners) is notable. Accordingly, investors looking for long-term exposure to what could be the future of education appear to be looking at this upcoming IPO closely.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
