Mobile game developer Playtika Holding Corp. readies for an initial public offering in New York worth up to $1.7 billion.
The listing on the Nasdaq Global Select Market is scheduled for next Friday, Jan. 15, secured by a slew of big banks including Morgan Stanley, Credit Suisse, Citigroup, and Goldman Sachs & Co. LLC. According to Reuters, the IPO will give Playtika a valuation of nearly $10 billion.
Playtika will only receive the proceeds of the sale of 21.7 million of its common stock, while its main shareholder, Playtika Holding UK II Ltd., is selling a stake of 47.8 million of the shares in the offering. The pricing is expected to range from $22 to $24 per share.
An additional 10.4 million shares will be available for over-allotments, according to the prospectus amended on Thursday.
Playtika said certain affiliates of BlackRock Inc., Caledonia, Dragoneer Investment Group, LLC, and Tiger Global Management, LLC, have indicated an interest in acquiring up to a cumulative $600 million in the IPO.
Founded in Israel in 2010, Playtika was bought by a Chinese investor group in July 2016, in a deal valuing the company at $4.4 billion at the time. The consortium of investors included Giant Network Group Co. Ltd. and Jack Ma’s Yunfeng Capital. The startup’s co-founder, Robert Antokol, remains Playtika’s chief executive, however.
The game developer with multinational operations, known for its casino-style games and solitaire, counts 35 million monthly active users. “We own some of the most iconic free-to-play mobile games in the world, many of which are the #1 games in their respective genres,” Playtika wrote in its filing with the SEC. Its top games include Slotomania and Bingo Blitz.
For the twelve months through September 2020, Playtika reported $2.3 billion in revenues and $46.1 million in net income. In the nine months through September, the company saw 29% year-over-year increase in revenues to $1.8 billion. Income declined to $16.1 million from $258.9 million in the nine months through September 2019, according to the report.
Other underwriters on the offering are UBS Investment Bank, BofA Securities, Baird, Cowen, Stifel, and Wedbush Securities.
The company expects to become traded under the symbol “PLTK.”