The mobile gaming app AppLovin was valued at $ 28.6 billion in IPO
A successful mobile gaming company like AppLovin, Matchington Mansion and Wordscapes has raised $ 1.8 billion in its initial public offering, providing a market capitalization of $ 28.6 billion and making it one of the largest public releases of the year.
The company, backed by the private equity group KKR, has established itself as one of the driving forces behind mobile gaming and has benefited from its increase in use. pandemic.
He owns more than 200 games and manages them himself and sells access to his marketing software to other developers, making it easier for their apps to make money.
The company had its share price of $ 80 before it was listed on the Nasdaq on Thursday, according to the regulatory filing, midway through the previously set $ 75- $ 85 range. The issue price gives the market value more than $ 2 billion when KKR bought a $ 400 million stake three years ago.
The private equity group sold 2.5 million shares in the offering, according to the regulatory filing, but retained a $ 8.6 million stake. KKR will also retain 67.4% of the company’s voting power.
AppLovin said its revenue reached $ 1.45 million last year, 46% more than in 2019, even though it lost $ 126 million compared to the previous year’s net income of $ 119 million. In its brochure, AppLovin said revenue growth from 2016 to 2020 was 76 percent.
Many other business companies went on to study public markets despite the fact that the pandemics brought in many new users and made them increasingly confident that many countries were reducing restrictions on personal activities. Favorite pre-teen Roblox batu The New York Stock Exchange last month, and the Israeli mobile game Playtika was listed on the Playtika Nasdaq in January.
In addition to slowing projected growth, the industry is also challenged by Apple’s strict advertising and privacy rules. is programmed to integrate in its app store in the coming months.
These changes were the “biggest challenge” for the mobile gaming industry at the moment, said Craig Chapple, a strategist for the Sensor Tower research team, but said it is possible to better position AppLovin to manage them because of double revenue from operating games. selling his development tools to others.
The bid was led by Morgan Stanley, JPMorgan, KKR, Bank of America and Citigroup.