Huuuge IPO Now on Polish Stock Market
Developer of social games Huuuge has officially began trading on the Warsaw Stock Exchange in Poland, following the much-anticipated launch of its initial public offering (IPO) in Europe. It is said to be the largest mobile gaming IPO launch of its kind in the continent, valued at PLN1.67 billion (£322.6m/€372.0m/$451.4m).
Huuuge Plans to Use Sale to Finance New Acquisitions
Europe’s largest-ever mobile gaming initial public offering (IPO) has just been recently launched in Poland, with trading already underway on the Warsaw Stock Exchange.
The IPO launch arrives courtesy of social games developer Huuuge, following long-running preparations and much anticipation surrounding the offering’s launch.
Huuuge’s IPO has already been valued at PLN1.67 billion (£322.6m/€372.0m/$451.4m), thereby making it the largest IPO for a gaming sector company in the history of the Warsaw Stock Exchange.
The social gaming developer has raised roughly PLN565 million in gross proceeds as a result of the offering.
Huuuge has confirmed that it will attempt to use these gross proceeds in future acquisition efforts, as well as to finance the company’s future long-term growth strategies.
Details concerning the developer’s IPO launch were only revealed as recently as January 2021. Concerning the offering’s pricing — developer Huuuge released these listings earlier this month.
Also detailed in January was the developer’s intention to use more than 90% of the PLN565 million it raised through the sale of new shares to go through with acquisitions of other various social gaming studios.
Huuuge’s initial public offering (IPO) offer price has been set at PLN50 per share. This likely puts the developer’s market capitalization upon listing at an impressive PLN4.2 billion.
IPO Plans Were First Announced in January 2021
Free-to-play social games developer and publisher Huuuge revealed further details in advance of their initial public offering (IPO) launch in January 2021.
It confirmed that it would go ahead with its Warsaw Stock Exchange listing and revealed how it was hoping to raise upwards of $150 million through the public offering.
It was in September 2020 when it was originally revealed that games developer Huuuge intended to apply for listing and admission of its shares on the main market of the Warsaw Stock Exchange.
At this point in time, the developer already expected to earn gross proceeds of up to $150 million (£110.8m/€124.3m ) stemming from the issuance of these new shares.
The company also took the opportunity to make clear its intentions to create a sizeable free float of approximately 25%.
This would be done in order to ensure adequate aftermarket liquidity, as well as meet the requirements set out by the listing rules.
Finally, the developer confirmed how the offering would be made publicly available to both retail and institutional investors in Poland, as well as to specific international investors.
The IPO and all its accompanying details would naturally have to stand in strict accordance with the Polish Financial Supervision Authority’s regulations.
Huuuge Is One of Fastest-Growing Mobile Developers
As it announced its intentions to finally launch a public offering on the Warsaw Stock Exchange, followed by further details surrounding the IPO itself, social games developer Huuuge asserted that it is one of the fastest-growing mobile developers currently on the market, with an increase in consolidated revenue jumping from $152.1 million in 2017 to $259.4 million in 2019.
This proves to be highly fortuitous for the developer, seeing as mobile gaming, especially smartphone and tablet games, constitutes a striking 45% of the global games market, and still remains the market’s fastest developing sector, according to Huuuge.
Huuuge’s consolidated adjusted earnings before accounting for interest, tax, depreciation and amortization (EBITDA) for the period between 2017 and 2019 increased from a $4.3 million loss to an impressive $24.8 million profit.
Its EBITDA margin therefore also increased from -2.9% to 9.6%.
When looking at more recent earnings and revenue reports, the nine months leading up to September 30th, 2020 saw the developer increase its consolidated revenue by 30% year-on-year, up to $243.5 million.
Consolidated adjusted EBITDA increased from $9.3 million to $54.2 million, corresponding to a margin of 22.3%.
Huuuge’s Shareholders and Investors are Diverse and Worldwide
As the first early trading on free-to-play social games developer and publisher Huuuge’s IPO offering finally begins, further details concerning the company’s shareholders and investors have become known.
Acting as one of Huuuge’s principal shareholders is its founder and chief executive Anton Gauffin who, mostly indirectly through Big Bets OÜ, now holds a series of shares accounting for 30.68% of the developer’s total shares.
Media and telecommunications-focused global merchant bank The Raine Group also holds a significant amount of shares, representing 12.96% of Huuuge’s total available shares.
Further interest and investment in Huuuge has arrived from investors originating from more than 20 countries worldwide.
Polish Operator and American VC Firm Recently Launched Fund
Poland continues to be an attractive option for both major gaming developers to launch their IPO offerings on the Warsaw Stock Exchange, as well as for burgeoning tech & gaming start-ups to headquarter themselves.
In December 2020, Polish state-owned operator Totalizator Sportowy in collaboration with American venture capital fund ffVC revealed a brand new partnership specifically focused on investing in domestic Polish gaming start-ups, as well as other surrounding Eastern European markets.
Titled the ffVC Tech & Gaming fund, the new venture capital fund birthed by the recent partnership between American venture capital firm ffVC and Polish state-owned operator Totalizator Sportowy hopes to invest in ten to fifteen start-ups by the end of 2023.
This new VC partnership fund will be aiming to handle start-up investments in the range between PLN1 million (£202,000/€224,000/$271,000) and PLN8 million.
However, additional subsequent investments may even reach heights of PLN15 million or more.
Yet the support for new start-ups does not start and end at large injections of capital.
Further perks that start-ups may choose to benefit from will be, for example, access to Totalizator Sportowy’s extensive network of contacts and resources in Poland.
For their part, ffVC will take a more hands-on approach in guiding start-ups’ forays into growing US markets.