iCandy (ASX:ICI) share price soaring on partnership with Alibaba

The iCandy share price is rocketing today after a company update on its partnership with China e-commerce giant Alibaba.

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The iCandy Interactive Ltd (ASX: ICI) share price is skyrocketing today following a partnership update with Chinese e-commerce giant Alibaba Group (NYSE: BABA). The iCandy share price is currently trading 22.06% higher at 8.3 cents.

What does iCandy do?

iCandy develops and publishes mobile games and digital entertainment for a global audience. The Australian company's diverse portfolio of award-winning mobile games is played by more than 350 million people. The company has won multiple awards in various coveted international events.

iCandy shares first began trading on the ASX in February 2016. The company has a market cap of $30 million.

Partnership update

The iCandy share price is storming higher after the company released an operational update on its strategic collaboration with 9Games, a unit of Alibaba Digital Media and Entertainment Business Group. iCandy reported that 9Games had applied to register iCandy's hit music game Groove Planet for the People's Republic of China (PRC).

An application is required because all online games need an International Standard Book Number (ISBN) which Chinese regulators have to approve before a product can be listed in Chinese app stores. The ISBN application in China involves several government bureaucracies. It's a stringent process that now limits the number of game titles allowed in the lucrative Chinese game market.

Groove Planet is the first among 6 games that iCandy has identified for China. Other games will be put into the regulatory application process at a later date. 

So what does it mean?

China recorded more than US$36.5 billion in gaming revenue in 2019, placing it just behind the US as the world's largest gaming market. According to Marketing to China, the mobile game segment is expected to reach 496.8 million users by 2023. Thus showing the potential the partnership has to offer and why investors are so excited.

The completion of documentation reflects an exciting opportunity for the Australian small-cap, and the iCandy share price has exploded today as a result. However, it must be noted that iCandy still must receive approval by Chinese regulators in order to reach China's highly coveted app stores.

Daniel Ewing owns shares of Alibaba Group Holding Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another strong showing from the share market today.

Read more »

Three miners looking at a tablet.
Resources Shares

Own ASX mining shares? Experts say an upswing in commodity prices has begun

HSBC economists Paul Bloxham and Jamie Culling explain why global commodity prices are rising.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Brambles, Lifestyle Communities, Northern Star, and Select Harvests shares are sinking

These shares are having a tough session. But why?

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Share Market News

Will the Reserve Bank wait for the US Fed to cut interest rates first?

Here's when AMP thinks interest rates will be cut in the US, Australia, New Zealand, Canada and the Eurozone.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Healthco Healthcare, Medadvisor, Ramsay Health Care, and Tamboran shares are rising

These shares are having a strong session. But why?

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Share Gainers

If you invested $6,000 in Mesoblast shares a month ago you'd have $15,636 now!

Mesoblast shares have been on a tear this past month. But why?

Read more »

Gold bars on top of gold coins.

Is it too late to buy gold as an investment in 2024?

Can we still take advantage of gold at new record highs?

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Mergers & Acquisitions

Wesfarmers shares baulk on fresh acquisition gossip

A healthcare company gone nowhere in a decade might be on Wesfarmers' radar.

Read more »