Grindr stock soars by 300 per cent after company goes public
Grindr displays its banner outside of the New York Stock Exchange (NYSE) as the company goes public. (Getty)
Shares in the queer dating app Grindr have exploded by over 300 per cent after the company went public.
The app’s stock quickly rose exponentially shortly after executives officially rang the bell at the New York Stock Exchange on Friday (18 November), the Financial Times reports.
After successfully finalising a merger with a special purpose acquisition company, stock rose from $16.90 to $71.51 in mere moments, likely due to the number of shareholders opting to redeem their investment following its completion.
NYSE showcased the amazingly queer ceremony to celebrate the company going public, with drag performers and queer artists showing the stock market how it’s done.
“Into public? So were they,” NYSE said in a tweet.
Traders work on the floor of the New York Stock Exchange (NYSE) as the LGBTQ social networking platform Grindr goes public. (Getty)
The company initially announced its merger with Spac company Tiga Acquisition Corp in May, with rollover equity to be valued at $1.6 billion and an estimated post-transaction enterprise value of $2.1 billion.
Grindr itself was expecting to receive proceeds of around $384 million, but due to the number of shareholders choosing to redeem investments early and a $100 million forward purchase agreement, the sum dropped to $284 million.
At the time of reporting, the current stock sits at $36.50 – more than double the initial opening price.
Chief executive officer George Arison said: “Today marks an important milestone not only for the team at Grindr, but for the LGBTQ community we serve.
“I am thrilled to work with our team and investors as we continue expanding our platform and enhance the critical social infrastructure for a traditionally underserved community.”
In preparation for going public, Grindr reportedly announced a new management team in September – Arison, who founded the online car sale company Shift – was named CEO, while Vanna Krantz was appointed as chief financial officer.
The company, which launched in 2009, reported at least 11 million daily users in 2021 and over 260 million daily messages.
G. Raymond Zage III, who will be joining Grindr’s board of directors, said: “I am exceptionally proud to be bringing Grindr into the public market, where it is poised to deliver on its promise to the community and ultimately to all stakeholders as we execute our strategy for growth and value creation.”
