Match Group (MTCH), an online dating conglomerate, jumped Thursday in its first day of trading.
The company, a spin-off from Internet holding company IAC/InterActiveCorp (IACI), saw its shares rise $2.08, or 18%, to $14.08. The company sold 33.3 million shares to initial investors at $12 a share late Wednesday. The initial price was in line with the expected $12 to $14 a share price range.
Match offers consumers all sorts of high-tech ways to find a mate. Its namesake Match.com online service is free to join but allows users to subscribe to get added perks such as a more attractive profile to lure more potential suitors. The service costs $19.99 a month if you sign up for a 12-month subscription or $25.99 a month on a three-month plan. Mobile-based Tinder is another of Match’s well-known online dating offerings. The app allows users to swipe their finger on the screen to flip between different potential dates.
Match joins mobile payment processor Square as being the latest technology companies brave enough to test the fragile initial public offering market. These companies are often nicknamed “unicorns” as they’re supposedly rare and precious — and therefore command high price tags.
Match is coming to the market already profitable at least. It reported a net profit of $133.1 million in the 12 months ended in September. During that period, Match reported revenue of $991.9 million – which is up nearly 12% from fiscal 2014.
IAC/InterActiveCorp isn’t completely dumping Match. Following the IPO, IAC/InterActiveCorp. will retain 86.1% ownership of Match. Prior to the IPO, Match was entirely owned by IAC.
Follow Matt Krantz on Twitter @mattkrantz
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