Shares of Bumble (NASDAQ:BMBL) stock opened in the red after the online dating application announced the pricing for its secondary offering of common stock by selling stockholders. The offering will be priced to the public at $22.80 per share. A total of 13.75 million shares, up from the previously announced 12.5 million shares, will be offered. In addition, the underwriters of the offering will receive a 30-day option to purchase an additional 2.06 million shares, up from the previously announced 1.87 million shares.
It should be noted that Bumble will not receive any proceeds from the sale because they are not selling common stock. BlackStone (NYSE:BX) affiliates and CEO Whitney Wolfe Herd were revealed to be the selling stockholders. The offering is expected to close by March 8.
Let’s get into the details.
BMBL Stock: CEO Whitney Wolfe Herd to Sell Shares
Before the offering is enacted, Blackstone and its affiliaties will own 43.18 million shares of Class A common stock, equivalent to a 33.8% ownership stake, and 34.35 million common units, which is equivalent to a 18.2% ownership stake. Each common unit is exchangeable for one share of Class A common stock.
Following the offering, Blackstone will own 37.19 million shares of Class A common stock, assuming the underwriter’s option is not exercised. If the underwriter’s option is exercised, Blackstone will own 36.15 million shares of common stock after the offering. Furthermore, Blackstone will own 29.59 million common units after the offering, assuming the underwriter’s option is not exercised. If the option is exercised, Blackstone will own 28.76 million common units.
Now, let’s move on to Wolfe Herd. Before the offering, she will own 604,650 shares of common stock and 25.68 million common units. That’s equivalent to a 13.5% ownership stake. Following the offering, Wolfe Herd’s common stock ownership will remain unchanged. Her common unit ownership will fall to 23.93 million shares, regardless of whether or not the underwriter’s option is not exercised.
In total, Blackstone will offer 10.75 million shares, while Wolfe Herd will offer 1.75 million shares, if the underwriter option is not exercised. If the option is exercised, Blackstone will offer 12.62 million shares, while Wolfe Herd’s offering will remain unchanged.
On the date of publication, Eddie Pan did not hold (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.