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Oct 29, 2021
, Bloomberg News
(Bloomberg) — Education technology company Udemy Inc.’s shares opened below the price of the initial public offering, making the trading debut one of the 20 worst in the U.S. this year.
Shares of the San Francisco-based company, which sold for $29 in the IPO, opened Friday at $27 and fell as much as 10%. They were down 6.4% to $27.16 at 1:50 p.m. in New York trading, giving the company a market value of about $3.7 billion.
Udemy sold 14.5 million shares Thursday at the top of a marketed range of $27 to $29 to raise $421 million. Accounting for employee stock options, the company has a fully diluted value closer to $4.3 billion. The company was valued at $3.3 billion in a private investment last year, according to data provider PitchBook.
In a year in which IPOs have eclipsed previous records, Udemy’s is one of only 33 out of almost 200 listings of $200 million or more in which the stock opened below the offer price, according to data compiled by Bloomberg. Udemy ranked 19th worst of those, excluding blank-check companies, the data show.
Insight’s Stake
Udemy’s biggest investor is Insight Partners, which with its affiliates owns more than 30% of the company’s shares after the listing. Other top shareholders, according to Udemy’s filings with the U.S. Securities and Exchange Commission, include MIH Edtech Investments, which is a unit of Prosus NV, and Norwest Venture Partners.
Udemy’s revenue for the first six months of the year was $251 million, up from $201 million the year before. Its net loss narrowed to $29 million from $52 million a year ago.
Udemy provides online video courses across a variety of categories, including web development, marketing and business. The company said it had more than 201 million course enrollments last year with over 44 million users globally.
Its corporate customers include Citigroup Inc., Jaguar Land Rover, PayPal Holdings Inc. and Box Inc.
Coursera, Pluralsight
In the risk-factors section of the prospectus, Udemy acknowledges that it’s in a highly competitive market which includes Coursera Inc., Pluralsight Inc. and LinkedIn Learning.
Morgan Stanley and JPMorgan Chase & Co. are leading the offering. The company’s shares are trading on the Nasdaq Global Select Market under the symbol UDMY.
©2021 Bloomberg L.P.
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