The PlaySide Studios Limited (ASX: PLY) share price has landed on the Australian share market with a bang following the completion of its initial public offering (IPO).
At one stage today, the video game developer's shares were changing hands for as much as 41 cents.
This was more than double the IPO listing price of 20 cents.
At the time of writing, the PlaySide share price is up 65% from its listing price to 33 cents.
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What is PlaySide?
Melbourne-based PlaySide is one of Australia's largest independent video game developers with over 52 titles developed.
This includes games based on original intellectual property (IP) and games developed with Hollywood studios such as Disney, Warner Bros, and Nickelodeon.
It operates in a mobile games market which is estimated to be worth $77.2 billion after growing at 13.3% year on year.
The PlaySide IPO.
PlaySide commenced trading on the Australian share market today following the completion of an IPO that raised $15 million from investors at 20 cents per share.
The company revealed that the IPO received strong support from a broad range of institutional and retail investors.
Upon listing, Playside will have approximately 366.5 million shares on issue, giving it a market capitalisation of $73 million based on the IPO price.
Where will it spend the IPO proceeds?
Management intends to use the funds raised from the IPO to secure the rights to develop mobile games from select media brands within its Brands & Licensing Division and expand its development team to support new original titles.
PlaySide will also invest additional resources in its data analytics team, sales and marketing teams, and user acquisition. In addition, it plans to open a business development office in Los Angeles when the risk from the COVID-19 can be appropriately managed.
Managing Director, CEO, and Co-Founder, Gerry Sakkas, commented: "PlaySide has in the past few years proven its ability to make games that millions of people love to play while sustainably building a profitable business on a global stage and, having now listed on the ASX, we believe we'll be able to scale our skills, science and art to unlock significant value for PlaySide shareholders."
"As a close team we are excited and motivated for the next phase of our journey and, as you can see from the business update today, we've continued our growth momentum through the IPO period and I look forward to updating you regularly on the rewards of our hard work," he concluded.
