BERLIN: German online language learning company Babbel said on Tuesday (Sep 7) it would list on the Frankfurt stock exchange this year to raise more than €180 million (US$214 million).
The Berlin-based company, which had revenue of €147 million in 2020, said it would use the proceeds to introduce new learning experiences, access new markets and to settle certain claims under existing employee incentive schemes.
Sources familiar with the deal said Babbel, which was founded in 2007, could be valued at €1-2 billion under the deal.
Babbel is selling new shares worth €180 million, while some existing shares will also be on offer.
Babbel, which has sold more than 10 million subscriptions, said it hoped to complete the listing this year, subject to market conditions.
Larger rival Duolingo floated recently in the United States and is now worth US$6 billion.
BNP Paribas and Morgan Stanley are organising Babbel's IPO with the help of Citi and Berenberg.