IPO of the Week: Match Group

Josef Schuster
Dr. Josef Schuster is the founder of Chicago-based IPOX Schuster LLC and chief architect of the IPOX® Indexes. The IPOX methodology is implemented in an IPO and spin-off strategy at Catalyst Funds. Before founding IPOX, Dr. Schuster pursued his academic work on European IPOs in the Financial Markets Group (FMG) at the London School of Economics (LSE), where he completed his MSc and PhD and conceived the idea to start IPOX. He regularly appears in the media as an expert in global New Listings and respective investment products.

Company Description


Match Group

Incorporated in 2009, Dallas, Texas-based Match Group is a worldwide leading provider of dating products with a diverse portfolio of brands including Tinder, Match, and OkCupid. Match Group is a wholly owned subsidiary of IAC/InterActiveCorp. In addition to the dating business, Match Group once operated in the education service industry through its ownership of The Princeton Review. The Group sold Princeton Review to Korean education technology company ST Unitas in 2017.

Business Model

Match Group derives revenue from recurring subscriptions, non-recurring fees, and online advertising.

IPO History

On 11/19/2015, the same day as Square’s debut, Match Group launched on Nasdaq led by J.P Morgan, Allen & Company, and BofA Merrill Lynch. The stock was priced at $12.00 per share, the low-end of indicative price range of $12.00 – $14.00/share. With a full subscription of 33.33 million offered shares and the 15% over-allotment option fully exercised, the company was valued at $2.98 billion at offer. Match opened at $13.50/share, a 12.5% jump from its offer price, and extended its gain on first day of trading to $14.74/share with a 22.83% initial return. Match Group was included in the IPOX® 100 U.S. Portfolio on 12/14/2015 and currently weighs approximately 1.2% of the portfolio.

Historical Performance

Growth Outlook

Industry Comparison

Company

Stock

Symbol

IPO/Spin-off

Date

Initial
Return

Offer to Date

2019

YTD

Beta to S&P

EPS

2018

Revenue

(in millions)

2018 Net Income

(in millions)

P/S
ratio

Match Group

MTCH US

11/19/2015

22.83%

495.46%

58.80%

1.20

$1.61

$1,729.85

$477.94

11.0x

Jiayuan.com

DATE US

05/11/2011

-4.36%

Acquired by Baihe in 2016 for 250 million, an 8.0% premium

Spark Networks

LOV US

Merger of Spark Networks & EliteSingles on 11/02/2017

68.78%

0.44

€(2.39)

€104.55

-€1.49

1.50x