Playtika Holding Corp launches IPO in an attempt to boost its valuation to $10 billion and capitalize on gaming trend

Playtika Launches IPO

Israeli gaming company Playtika Holding Corp has launched an initial public offering in the US to further boost its growth and capitalize on the growing demand for mobile gaming.

The company is attempting to raise $1.67 billion and thus increase its total valuation to nearly $10 billion. Playtika, which is owned by a Chinese investor group, will sell 69.5 million shares at $22 to $24 a piece.

The company hopes to capitalize on two recent developments on the market: the upsurge for listings in the US last year and the rapidly growing demand for video games. The increase is, of course, a result of the pandemic and accompanying lockdown measures. Consumers spend most of their time at home, which in turn boosts the need for entertainment, such as video games.

Timing is Everything

Playtika designs and casino and slot-based gambling games for over 35 million monthly users. While these kinds of games are not new, they certainly saw a big spike in profitability and interest last year.

In fact, many jurisdictions across the globe have turned to online gambling and betting as a new source of income to fill in their budget shortfalls. Some recent examples include Portugal and Spain. The Philippines, on the other hand, is looking into e-cockfights.

The timing of Playtika’s IPO is a bit unfortunate, however. As previously mentioned, Playtika is owned by a group of Chinese investors, including Giant Network Group Co Ltd and Yunfeng Capital.

The IPO comes during a time of heightened scrutiny and tighter regulations and norms against Chinese firms. Three Chinese companies were delisted from the US stock exchange market only three days prior to Playtika’s IPO.

The company plans on listing itself as “PLTK” on the Nasdaq.