Kahoot Weighs U.S. Listing to Ride Boom in Educational Games

(Bloomberg) -- Norwegian quiz and learning platform Kahoot! AS is considering a dual listing in the U.S., taking advantage of a surge in popularity during the pandemic, according to people familiar with the plans.

Kahoot is currently listed on Euronext Growth Oslo, a venue for small and mid-sized companies, and is set to move to Norway’s main market over the next two months. The company, which counts SoftBank Group Corp. and Creandum AB as investors, is weighing a listing in the U.S. because it’s seen a jump in the number of users in the country and wants to attract larger U.S. investors, said the people, who asked not to be named as the plans are confidential. Kahoot may still decide to keep its sole listing, they added.

“We are preparing for a main listing at Oslo Stock Exchange end of Q1 2021,” a Kahoot spokesman said. “We have no official statement at the current time concerning a possible secondary listing on a foreign exchange, including in the U.S.”

Kahoot’s stock has surged more than 400% in the past 12 months, giving it a valuation of $6.7 billion, as it added subscribers to its game-based learning tools when classrooms were forced online due to the pandemic. That would make it the 12th biggest company listed on Oslo’s main market.

During the third quarter, Kahoot had over 360,000 paying subscribers, almost doubling from the previous year, with the U.S. and Canada representing about 49% of revenue, according to its latest earnings report.

The education technology sector has exploded over the past year, attracting investors betting that a prolonged lockdown will introduce parents and kids worldwide to a new way of learning.

Bangalore-headquartered Byju’s is valued at $12 billion and has been on a fundraising spree as the pandemic sent demand for its online lessons soaring. In December, Alibaba Group Holding Ltd. and Tiger Global Management LLC led a $1.6 billion investment in Chinese online education startup Zuoyebang.