Playtika looks set to disrupt the financial market after the company’s stock literally skyrocketed after raising over $1.88 billion in their initial public offering. The Israel-based mobile game developer has become increasingly popular in recent times, boasting of more than 35 million active users and revenue of over $2 billion.
The recent surge in the company’s share by as much as 34% gave the mobile game developer a valuation of about $15 billion in its first trading day after its successful IPO. The jump comes after the company’s recent initial offering where it raised $1.88 billion, with 69.5 million shares priced at $27 each.
The share price surpassed Playtika’s initial targeted range of between $22 and $24. This ultimately makes the offering the largest Israeli initial public offering ever. Investment giants such as BlackRock, Caledonia, Dragoneer Investment Group, and Tiger Global Management piled up on over $600 million worth of shares in Thursday’s IPO, as Playtika’s shares trade on the Nasdaq under the ticker symbol “PLTK.”
Headquartered in Herzliya, Israel, the company was founded by Robert Antokol and Uri Shahak and officially launched in 2010. The company was among the first providers of free-to-play games on social networks and mobile platforms, a feature that made it popular among gaming enthusiasts. Playtika was subsequently acquired by Caesars Entertainment before it was eventually sold to a group of Chinese investors in 2016.
The firm has grown over the years and presently employs more than 3,700 people in 19 offices across the globe, notching revenue of over $2.3 billion and adjusted EBITDA of $815 million for the 12 months ending Sept. 30.
Craig Abrahams, President & CFO of Playtika, said in a statement to Business Insider that the company is “incredibly excited about going public today.”
“At Playtika, we see our games differently. They aren’t just games, they’re entertainment platforms. We’re excited about our growth prospects moving forward, and extending our journey as a leading mobile games technology company,” he continued.
Playtika currently has over 35 million monthly active users across its titles, which include Slotmania, Bingo Blitz, and Board Kings.
The Chinese backed mobile game expert expects to leverage the increasing prominence of mobile games to grow the brand going forward. Mobile games generated $77.2 billion in revenue during 2020, an increase of 13.3% year-over-year, according to data from Newzoo.
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