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The total amount raised through the IPO gives Playtika a valuation of $11.1 billion.
Israeli-based gaming giant Playtika Holding Corp is set to make a grand entry on the Nasdaq bourse following its Initial Public Offering (IPO) where it raised $1.88 billion. As reported by Reuters, the gaming giant Playtika revealed on Thursday that it had sold the shares in the IPO at $27 each, a figure that is well beyond the projected share price range of $22 to $24.
At the boosted rate, Playtika noted that it sold a total of 18.5 million shares, compared to an original plan of 21.7 million shares, and a further 50.98 million shares by existing investors, up from 47.8 million originally, per the Reuters report.
The United States IPO market remains one of the most coveted by investors around the world and the market saw impressive growth in the past year 2020. The record broken in 2020 was one of the biggest in about 2 decades and the run in 2021 thus far has proven the IPO market is set to record new leaps.
The attraction in the US stock market comes at a price, however, especially for Chinese-based companies who have been under intense regulatory scrutiny from US authorities. The IPO revelation from Playtika comes at a time when the New York Stock Exchange (NYSE) ramped up its plans to delist three Chinese Telecom companies.
Though the Playtika IPO plans have not been strained thus far, its close connections to China as it was purchased in 2016 from Caesar’s Interactive for $4.4 billion by Chinese investors including Giant Network Group Co Ltd and Yunfeng Capital, a private equity firm founded by Alibaba Group’s Jack Ma gives room for potential future oversights. This may not be likely seeing a new administration will be ushered in by next week.
More Detail on Gaming Giant Playtika IPO
The total amount raised through the IPO gives Playtika a valuation of $11.1 billion. The shares of the company are expected to start trading on the Nasdaq Global Select Market on January 15, 2021, under the symbol “PLTK.”
The IPO’s underwriters include Morgan Stanley (NYSE: MS), and Credit Suisse Group AG (SWX: CSGN), as well as Citigroup Inc (NYSE: C), Goldman Sachs Group Inc (NYSE: GS), UBS Group AG (SWX: UBSG), Bank of America Securities. Baird, Cowen Inc (NASDAQ: COWN), Stifel Financial Corp (NYSE: SF), and Wedbush Securities are acting as co-managers for the offering.
Should the Playtika IPO meet with similar successes like that of Airbnb Inc (NASDAQ: ABNB), the gaming giant will likely see a three times increase in its share price in the coming weeks after its Nasdaq debut.