Mobile Gaming Company Applovin Raises $1.8B In IPO
Applovin a company, founded in 2014, raised $1.8 billion in its initial public offering on Thursday, giving it a market capitalization of $28.6 billion. AppLovin’s valuation marks one of the biggest IPO debuts of 2021.
priced at $80 in the IPO, and closed at $65.20 a down of 18.5%, giving the company a market value of about $23 billion based on the outstanding shares listed in its filings with the U.S.S.E.C (U.S. Securities and Exchange Commission). A total of 22.5 million shares were sold by Applovin and the major investor KKR sold about 2.5 million shares.
Applovin has developed into one of the many large mobile leisure publishers with more than 200 titles of its own. Founded in 2011 to help builders discover and make money, Applovin grew rapidly with the help of corporate capital.
Applovin is considered one of the leading mobile video game authors, and the company now owns more than 200 titles. Founded in 2011 to help designers find target markets and make money, Applovin has since expanded with the help of equity.
The Company reported an adjusted EBITDA of $255.6 million, $301.4 million, and $405.5 million for 2018, 2019, and 2020. Applovin posted a net loss of $125.9 million in 2020. In 2020, almost half of Applovin’s total yearly revenue came from companies licensing of its software and the other half from consumers making in-app purchases on its titles.
It is unique in that it is headquartered between Moscow and Los Angeles, said by a creditable source, The market is so hot that the company was originally supposed to raise $30 million, but it came to $50 million.
AppLovin claims its revenue reached $1.45bn in 2020%, up 46 % From its revenue in 2019, although it lost $126m compared with a net income of $119m the previous year. Applovin claims to have achieved a growth rate of 76% from the years 2016-2020.
The company recently made headlines in May announcing that it was acquiring game development firm Machine Zone Inc., which some insider people said was valued at about $500 million in the deal. This year, the game-maker bought a Berlin-based Adjust in a deal that valued the maker of tools to measure the performances of apps at close to $1 billion,
Applovin isn’t the only major IPO from the gaming industry that happened this year a couple of months back Robolox went public in a multi-billion dollar Valuation.
Read our previous story of Applovin aiming for a $30 billion IPO below.
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