Match aiming for €500m in IPO

Match Group, the parent company of online dating businesses Tinder, Match.com and OkCupid, is aiming to raise as much as $537million (€499m) in its initial public offering (IPO).

The New York-based company said it was looking to sell 33.3 million shares at a range of $12 to $14 each, according to its latest regulatory filing.

Its underwriters have the option to buy an additional 5 million shares.

Match’s owner IAC, a media and entertainment conglomerate run by Barry Diller, announced plans to spin off the division in June.

It plans to list up to 20 per cent of Match Group’s common stock in the offering, which is expected to complete by the end of the year, with IAC retaining the remaining stake.

A portion of the funds raised will be used to repay debt to IAC and as a dividend to the parent company, with the remainder going to general corporate purposes.

The company, which boasts 59 million monthly active users and 4.7 million paid subscribers, has recently been IAC’s fastest-growing division.

Revenue rose 11 per cent to $888.3 million in 2014 and net earnings climbed 17 per cent to $148.4 million. Twelve months trailing revenue through June was $1billion.

Along with Square, a payments start-up led by Jack Dorsey, Match will test an uncertain market for IPOs in the US.

Over the past month almost every IPO has priced below its range following a sell-off in the broader market.

Those who bought October’s IPOs have reaped a return of 6.5 per cent compared with a decline of 2 per cent for IPOs throughout all of 2015, according to Renaissance Capital, a company that specialises in IPO research and investment.

The rally in recent IPOs as well as the rebound in US equities indicates cautious support for new listings.

After surging this summer, the CBOE’s Vix index, a barometer of volatility known as Wall Street’s “fear gauge”, has dropped below its long-term average further underpinning listings.

Match could benefit from its unique position.