Playtika Holding (PLTK), a leading developer of casino and mobile games, is looking to raise $1.6 billion with an initial public offering that will give it a valuation near $10 billion. The Playtika IPO is expected to price shares late Thursday and trade Friday.
Playtika is expected to offer 69.5 million shares at a price range of $22 to $24.
Based in Herzliya, Israel, the company has produced nine games ranking in the top 100 highest grossing mobile games in the U.S. That’s based on total in-app purchases in the Apple and Android app stores for the nine-month period ended Sept. 30, according to the Playtika IPO filing.
“We own some of the most iconic free-to-play mobile games in the world, many of which are the No. 1 games in their respective genres,” the filing said. “As a result, we have steadily increased our user base and paying users, and have retained users over long periods of time.”
The company says it has primarily grown its game portfolio through acquisitions.
Playtika IPO Earnings Report
For the nine-month period ended Sept. 30, Playtika reported revenue of $1.8 billion, up 29% from the year-ago period. It reported net income of $16 million, vs. $259 million in the prior period.
IPO research and investment firm IPO Boutique, says the request for shares is “many multiple times over subscribed.” It expects the Platika IPO to price above its estimated range.
The Playtika IPO will trade on the Nasdaq under the ticker PLTK. The lead underwriters include Morgan Stanley, Credit Suisse and Goldman Sachs.
Recent IPO stocks are where you often find some of the market’s best stocks. New IPOs are typically in their early stages of growth. Moreover, it’s big earnings growth that generally fuels a stock’s price performance.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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