AppLovin, a mobile gaming company that owns hits such as Matchton Mansion and Wordscapes, has raised $ 1.8 billion in an initial public offering and has a market capitalization of $ 28.6 billion, making it one of the biggest public debuts of the year. became.
With the support of private-equity group KKR, the company has established itself as one of the power players for mobile games through numerous acquisitions. Pandemic..
Owning and running over 200 games and selling access to marketing software to other developers makes it easy for developers to monetize their apps.
The company set the stock price at $ 80 before listing on the Nasdaq on Thursday, according to a regulatory filing. This is the midpoint between the previously set $ 75 and $ 85. The issue price gives KKR many times higher market value than the $ 2 billion that KKR bought $ 400 million in shares three years ago.
According to regulatory filings, the private-equity group had sold 2.5 million shares in the offer, but held $ 8.6 billion worth of shares. KKR also holds 67.4 percent of the company’s voting rights.
According to AppLovin, last year’s sales reached $ 1.45 billion, an increase of 46% compared to 2019, but a loss of $ 126 million compared to a net profit of $ 119 million the previous year. It was. In the prospectus, AppLovin states that annual revenue growth increased by 76% from 2016 to 2020.
Several other gaming companies are public, despite uncertainty in their outlook after the pandemic has brought them a plunge in new users, and as many countries lift restrictions on face-to-face activities. I was in a hurry to open up the market. Preteen’s favorite Roblox I participated Last month the New York Stock Exchange and Israeli mobile game developer Playtika went public on the Nasdaq in January.
In addition to the expected slowdown in growth, the industry is also facing headwinds from the stricter advertising and privacy regulations that Apple is. Scheduled to be integrated In the next few months to that app store.
Craig Chapple, a strategist at research group Sensor Tower, said these changes are currently the “biggest challenge” for the mobile gaming industry, but AppLovin sells game management and development tools to others. ..
Morgan Stanley, JP Morgan, KKR, Bank of America and Citigroup led the proposal.
Mobile gaming group AppLovin is worth $ 28.6 billion in IPO
Source link Mobile gaming group AppLovin is worth $ 28.6 billion in IPO