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Online education marketplace Udemy sets terms for $406 million IPO

October 20, 2021

Udemy, an online education marketplace offering user-generated courses, announced terms for its IPO on Wednesday.

The San Francisco, CA-based company plans to raise $406 million by offering 14.5 million shares at a price range of $27 to $29. New investor Caledonia Investments intends to purchase $75 million worth of shares in the offering (18% of the deal). At the midpoint of the proposed range, Udemy would command a fully diluted market value of $4.3 billion.

Udemy operates a two-sided marketplace where its instructors develop content to meet learner demand. Courses can be accessed through its direct-to-consumer or Udemy Business offerings, and address learning objectives such as reskilling or upskilling in technology and business, enhancing soft skills, and personal development. The company's platform provides over 44 million learners with access to over 183,000 courses in 75 languages and over 180 countries. Since inception, more than 73 million users have registered with Udemy.

Udemy was founded in 2010 and booked $479 million in revenue for the 12 months ended June 30, 2021. It plans to list on the Nasdaq under the symbol UDMY. Morgan Stanley, J.P. Morgan, Citi, BofA Securities, Jefferies, and Truist Securities are the joint bookrunners on the deal. It is expected to price during the week of October 25, 2021.