Duolingo, a popular language-learning platform, raised the price target for its initial public offering Monday to between $95 and $100 a share, up from a previous range of $85 to $95 a share.
The company said nearly 5.1 million shares will now be
sold in the IPO at the latest range. Roughly 1.4 million shares would be sold by stockholders, proceeds from which would not go to the company.
Last month, Duolingo filed a prospectus for an initial public offering with the Securities and Exchange Commission.
The Pittsburgh company plans to trade on the Nasdaq with the ticker DUOL.
The company said it offers courses in 40 languages to about 40 million monthly active users. Duolingo said in its prospectus that its app has over 500 million downloads.
The company said the COVID-19 pandemic "sparked a radical shift towards online learning, and its effects are likely to be enduring."
"To put our scale in context, there are more people in the United States learning languages on Duolingo than there are foreign language learners in all U.S. high schools combined," the company said, "and there are more people learning certain languages on Duolingo, like Irish and Hawaiian, than there are native speakers of those languages worldwide."
According to HolonIQ, 1.8 billion people across the world are learning a new language, and in 2019, consumer spending on both online and offline language learning represented a $61 billion market, Duolingo said.
"Driving much of the demand for language learning is the reality that English can unlock tremendous economic opportunity." the company said.
In 2020, Duolingo said, 51% of its revenue and 53% of total bookings came from the Apple's (AAPL) App Store, and 19% of revenue and 20% of total bookings were from Alphabet's (GOOGL) Google Play Store.
For the years ended Dec. 31, 2019 and 2020, the company said it had 27 million and 37 million monthly active users, respectively, representing year-over-year growth of 34%
Revenue totaled $70.8 million in 2019 and $161.7 million in 2020, representing 129% year-over-year growth.
Goldman Sachs and Allen Co. are the lead underwriters for the IPO.