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Investors Swoon Over Bumble s IPO - But What Exactly Is An Initial Public Offering?

Bumble raised US$2.15 billion in an initial public offering, or IPO, late on Feb. 10, just in time for Valentine’s Day. Investors swooned over the women-go-first dating app, buying more shares and at a higher price than initially expected, valuing the company at $8.3 billion. Please share this article - Go to very top of page, right hand side, for social media buttons. But what exactly is an IPO? As a finance professor, I believe understanding IPOs are an important part of knowing how markets work. More interesting to me, however, is how a new type of IPO is growing in popularity - including among the Redditors who are upending financial markets - and allowing more investors than ever to buy into the “hype when a company goes public.

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