- Duolingo made its market debut on the NASDAQ platform on Wednesday, July 28.
- The debutant stock noted a surge of about 36 per cent.
- The tech firm says that it registers a crowd of about 40 million active users on a monthly basis.
Tech company Duolingo (NASDAQ:DUOL, DUOL:US) has become one of the latest additions to the big family of publicly traded firms in North America.
The digital language app made its market debut on the NASDAQ platform on Wednesday, July 28, and when on to note a surge of about 36 per cent.
At the end of the day, Duolingo’s debutant stock closed at a value of US$ 139.01 per share, bringing its market capitalization to approximately US$ 5 billion.
Duolingo is said to be one of the leading language-learning apps in the world. The Pittsburgh-based company offers its customers to learn 40 distinct languages through 95 courses.
Before its public debut, it was valued at around US$ 2.4 billion in the wake of a funding of US$ 35 million.
Duolingo IPO details
From an initial public offering (IPO) price of US$ 102 per share, Duolingo's stock opened at a much higher price of US$ 141.4 apiece on Wednesday.
Duolingo raised about US$ 521 million in gross proceeds from its IPO, offering 5.1 million shares to the investors. Of the total, 1.4 million shares sold belonged to the existing shareholders of the company and the proceeds from those shares are not set to go to the company.
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Duolingo (NASDAQ:DUOL) stock
The COVID-19 pandemic sent an increased number of students and teachers to the internet-based learning model, which benefitted firms like Duolingo.
Duolingo's IPO, on the other hand, comes at a time when investors are increasing their focus on the edtech space.
The tech firm says that it registers a crowd of about 40 million active users on a monthly basis.
The company states that 51 per cent of the total revenues were from Apple Store and 19 per cent revenues from the Google Play Store. Notably, Duolingo was the top-grossing app for each store in the education category.
Apart from the language learning feature, Duolingo's English Test became quite popular during the pandemic as more than 2,000 universities accepted the test as a language certification option.
Duolingo's future plans Luis von Ahn, co-founder and CEO of Duolingo, has said that the public debut will enable the company to achieve greater success and give it an extra boost to reach from minor to major leagues.
Duolingo plans to focus on the flagship language-learning app and getting more active users who opt to switch as paying subscribers, added Mr Ahn. Since Asia is the fastest-growing region for Duolingo, it plans to expand in that region.