Adultery website AshleyMadison.com plans London IPO
Company was spurned in Toronto IPO, but Europeans have more 'liberal attitude'
AshleyMadison.com, a dating website for cheating spouses, is planning a matchup with investors in London later this year to raise up to $200 million US.
After being spurned in an earlier effort to raise money with an IPO in Toronto, it's parent company announced Wednesday that it would list later this year in London.
Avid Life Media Inc., the Toronto-based holding company that runs AshleyMadison.com, says it hopes to build on booming demand for its services. Avid Life also owns Cougarlife.com and EstablishedMen.com.
AshleyMadison has 36 million members in 46 countries, according to its head of international relations, Christoph Kraemer.
Making money from adultery
In an interview with Bloomberg Kraemer said "Europe is the only region where we have a real chance of doing an IPO" because of its more liberal attitude toward adultery.
"We're no longer a niche, but it's been difficult in North America to find the support to go public," he added.
AshleyMadison earns its money by charging men for credits, which they then use for introductions to women.
It had sales of $115 million last year, four times its revenue in 2009.
The U.S. currently accounts for half its business, but it plans to woo new members in Asia, particularly Japan, Taiwan and South Korea where it sees potential for exponential growth.
It attempted a share listing in Toronto in 2010 but was not able to appeal to investors at that time.