Language learning app Duolingo Inc notched a valuation of $6.5 billion after its shares surged nearly 40% in the company's Nasdaq debut on Wednesday, becoming the latest education technology startup to impress Wall Street.
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Duolingo's stock opened at $141.4 per share, blowing past the initial public offering price (IPO) of $102 per share, which crossed the top end of its target range. The stock later pared some gains to trade at $130.92 in the afternoon.
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.
Following the IPO, the company will focus on improving its flagship app and getting more active users to switch to paying subscribers, co-founder and CEO Luis von Ahn said. Duolingo offers courses in 40 languages to about 40 million monthly active users.
