Language learning app Duolingo valued at $6.5 bn in US market debut

Language learning app Duolingo made its US stock market debut on Wednesday. The company's shares surged to a record high as 40% on listing, giving it a valuation of $6.5 billion on a fully-diluted basis. The company's flotation comes at a time of increased investor interest in the edtech space, after pandemic restrictions sent students and teachers from the classroom to the web. The shares opened at $141.4 apiece, up from the initial public offer price of $102 apiece. Language learning app Duolingo Inc’s shares rose nearly 39% in their U.S. market debut, giving the company a valuation of $6.5 billion on a fully-diluted basis.

The company's flotation comes at a time of increased investor interest in the edtech space, after pandemic restrictions sent students and teachers from the classroom to the web.

Following the IPO, the company will focus on improving its flagship app and getting more active users to switch to paying subscribers, von Ahn said. Duolingo offers courses in 40 languages to about 40 million monthly active users.

The company also plans to expand more in Asia, its fastest growing region. Duolingo raised nearly $521 million in the IPO by selling about 5.1 million shares. Almost 1.4 million of those shares were sold by existing stockholders and the proceeds will not go to the company. Goldman Sachs & Co and Allen & Company are the lead underwriters for the IPO.