Shares Rovio Entertainment, the company which developed Angry Birds took flight on its initial public offering (IPO) debut on September 29, 2017. The company decided to go public at the beginning of September 2017.
Rovio’s shares were up 5.3 percent, trading at EUR 12.11 from its final price of EUR 11.50 in IPO in Helsinki. The aforementioned figures indicate the scenario of stock market by 08:14 am GMT on September 29.
Atte Riikola, an analyst at research firm Inderes stated that there is a high demand at initial stages. However, he noted the reaction is not too dramatic, provided the oversubscription of IPO taking place multiple times.
The market valuation of Rovio was EUR 950 million, which seemed higher based on the company’s historic profit.
Rovio launched Angry Birds in 2009 and its profits grew instantly. The growth slowed down with the availability of free mobile games.
The company reduced one third of its staff owing to operating losses in 2015. However, the company gained traction following the release of 3D Angry Birds movie and other games.
Rovio stated the decision to go public aims to generate growth and participate in gaming industry consolidation.
“In the IPO, Rovio received gross proceeds … that will be used to support Rovio’s growth strategy. We also believe that the listing will strengthen Rovio’s brand recognition and brand awareness … and thus enhances Rovio’s competitiveness,” Chairman Mika Ihamuotila said in a statement.
In the first half of 2017, Rovio’s profits doubled as compared to last year. It generated EUR 153 million and recorded a leap in core profits from EUR 11 million a year earlier to EUR 42 million.
Analyst Riikola emphasized that the company needs to continue good performance to perform well in stock market.