• Plans to raise as much as $466.7 million in public offering
  • Sale proceeds to be used to repay debt to IAC, filing shows

Match Group Inc., the owner of online-dating sites Tinder, Match and OkCupid, is seeking a valuation of as much as $3.36 billion in its initial public offering.

Match Group, a unit of Barry Diller’s IAC/InterActiveCorp, plans to sell 33.3 million shares of common stock at $12 to $14 each, the company said in a regulatory filing Monday. Based on the total common stock planned to be sold and 206.7 million shares of Class B stock outstanding after the offering, the company would be valued at $2.88 billion to $3.36 billion. Including $1.3 billion in debt at the end of September, the company would have an enterprise value of about $4.7 billion.

At the high end of the marketed share price range, Match Group plans to raise about $466.7 million. The stake is equal to about 14 percent of Match Group’s shares. The proceeds will be used to pay off debt owed to IAC, according to the filing.

Diller combined the dating sites into a separate business about two years ago, leading to speculation that the operation would be spun off. Match Group has seen its customer base shift toward mobile users, increasing the importance of its Tinder brand. Sixty-eight percent of new registrations came from mobile devices in the first six months of this year.

After the sale, IAC will retain control of the company, owning about 86 percent of Match’s shares. IAC holds Class B shares, which are entitled to 10 votes each, so the company will hold 98 percent of the voting rights, according to the filing.

Match Group filed for an IPO on Oct. 17, without specifying how many shares it planned to sell and at what price. Monday’s filing added that information. Match Group reported profit of $148.4 million on $888.3 million in sales in 2014, according to the IPO document.

JPMorgan Chase & Co., Allen & Co., Bank of America Corp.’s Merrill Lynch unit and nine other banks are managing the sale.

(Corrects amount company seeking to raise in IPO in the second headline of story that ran on Nov. 9.)
Before it's here, it's on the Bloomberg Terminal. LEARN MORE