Angry Birds Maker Leaps Forward with $1 Billion IPO

Angry Birds Maker Leaps Forward with $1 Billion IPO

Rovio Entertainment, the mobile game developer, plans to go public with a valuation of around $1 billion. The maker of Angry Birds set a price range on September 14.

As per the reports, the proposed value is very less compared to its potential values. The Finnish mobile game maker announced its initial public offering (IPO) at the beginning of September 2017. The company plans to consolidate its position and boost growth in the gaming industry.

The Finnish firm has gained momentum after struggling for two years. Earlier reports suggest that the company should be valued up to $2 billion. However, analysts doubted it would cross the suggested mark.

The preliminary price range €10.25 to €11.50 per share was announced by the company on September 15. The price range would contribute to a market value of €802 million to €896 million, or $950 million to $1.1 billion.

The total number of games download of Rovio Entertainment is 3.7 billion. The rapid growth of the Finnish game maker took place after the launch of Angry Birds in 2009. Rovio was slow to adapt to the trend of freely available mobile games, which generated revenue from in-game purchases.

Its business took a dip when an arch rival’s games such as Supercell’s Clash of Clans and King’s Candy Crush Saga captured the major market share.

The company will sell its 45 percent of shares in floatation, which would raise €438 million to €488 million. Of this, Rovio will be able to fill their pockets with only €30 million. Most of its money would go to major owners like Trema International and venture capital firms, Atomico and Accel Partners.

The subscription period begins on September 18. Trading will begin on the Helsinki bourse’s prelist on September 29. However, it would begin on the main list on October 3.