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If you’re gay, single, and ready to mingle, I just may have come across the perfect app for you. 

If not, keep reading anyway— because this dating app, which conducted it’s IPO yesterday, could serve up some exciting profits.  

The IPO market has proven that it’s hungry for risk right now, which means that an opportunity like this could be well-positioned. 

The app is called Blued

The company is BlueCity Holdings (BLCT), a leading online LGBTQ community and platform for dating in China. 

The market for these services is quite high, plus its users and revenue are growing very fast. 

It also falls in the realm of digital communication, which is an industry that’s solving problems for this new culture created by the coronavirus now. 

While I’m issuing the IPO a tentative yellow light, I’m nevertheless watching it close for strength and may jump in if it breaks it’s highs a few times.

I want to share a little more insight into the company’s growth potential, how it priced out, and what that all means for its trading potential. 

 

Blued Boasts As Many Users As Several Most Popular Heterosexual U.S. Dating Apps

 

The world is becoming increasingly open to diversity. 

BlueCity got its start in 2011 because the founders, including a former policeman, wanted to support this development. 

The company gives LGBTQ people an online destination to form connections and find communities. 

Already it has a variety of offerings, which go beyond just dating. 

Those include community, health & wellness services, and assisted reproduction services. 

Their Blued app is also making use of live streaming technology that has long been popular in Asia — but that only picked up in the U.S. recently, thanks to an IPO I covered here.

But what I’m liking most about Blued is the growth in its number of users. One of the absolute most important indicators of the success of apps is usership

In terms of gay dating apps in China, Blued currently has the largest number of monthly active users. 

Their LGBTQ community even extends beyond China to India, Korea, Thailand, and Vietnam.

As of March 31, 2020, the company has grown its registered user base over 49M. 

That’s really good, considering statistics from popular U.S. dating apps. 

 Tinder has 50M, OkCupid has 30M, Bumble has 55M. 

And among gay-only U.S. dating apps, Hornet has 15M, Scruff has 15M, and 

Grindr has 5M.

 

Why I May Pounce on BLCT If It Breaks Highs

 

Blue City Holdings (BLCT) just listed on the NASDAQ yesterday. 

And although I have concerns about it being a Chinese IPO, the company fulfilled the tech exchange’s new listing requirements.  

BLCT raised $85 million through an offering of 5.3 million ADSs at $16, which was within the range of $15 to $17.

The company now has a market cap of $614 million.

Something promising about the offering is that insiders have “skin in the game.” 

CEO, Ma Baoli, purchase $5 million worth of ADSs in the offering.

More importantly, BLCT has shown impressive revenue growth and is close to breaking even on the books. 

They booked $116 million in revenue for the 12 months ended March 31, 2020.

Now, the underwriters for this deal don’t get me excited. 

They are MTD Global Markets, Loop Capital Markets, Tiger Brokers, Prime Number Capital, and R.F. Lafferty & Co.

But the stock was up as much as 70% at one point in the initial hours of trading. 

BLCT is a yellow light for now. But as I said earlier, I’m watching for strength and may jump in if it breaks it’s highs a few times. 

 

See What I’m Trading In My Premium IPO Payday Service

 

At the moment, I’m currently trading SLQT, ACI, PLRX, and a few other IPOs. 

To see how I’m trading these names and timing my entries and exits, or to see what’s on my watchlist, consider joining my premium IPO payday service. 

I’m hosting an IPO training workshop here shortly, which I recommend you join if you want to learn how to get a piece of this exciting corner of the market.

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

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