Mobile gaming company Playtika Holding Corp. announced last Friday that it has confidentially submitted documents with the U.S. Securities and Exchange Commission for an initial public offering. According to the company, the size and and price range of the offering has not yet been determined.
To underwrite the IPO, Playtika has hired Morgan Stanley and other banks. Sources say that they are planning to go public at the end of the year or in early 2021. If things go according to plans, the company will be valued at an estimated $10B as a result of the IPO.
The move comes at an interesting time for a Chinese-owned company like Playtika. Tension between the White House and Beijing are once again running after the Luckin Coffee Fiasco. The Chinese-owned Luckin coffeehouse chain was recently delisted in the Nasdaq after it was found to have falsified its revenue declaration.
In the aftermath of the Luckin farce, Chinese firms trading in the US markets are facing more scrutiny. There are rumors that some large companies are thinking about pulling their New York listings. Last week, the US Senate passed a legislation that would require listed Chinese companies to be held to the same accounting and regulatory standard as US companies.
Sold in 2016
Playtika is the mobile gaming supplier behind the WSOP’s social platform. It is also the game developer of popular slot titles such as Bingo Blitz, Poker Heat, and Caesars Slots. It was founded in Israel in 2010 and was owned by Caesars Interactive Entertainment from 2011-2016.
When Caesars field for bankruptcy protection and tried to sell its assets in 2015, Playtika ended up being sold for $4.4B to Chinese investors in August 2016 as part of its cash raising efforts. Among the investors were Alibaba founder Jack Ma who joined the group via the Yunfeng private equity group.
Looking To Cash In
Last June, Playtika announced that it was considering an IPO in the United States, as part of its efforts to mitigate the impact of the COVID-19 pandemic on its business. At that time, the Giant Network Group Co Ltd. and Yunfeng Capital group owned mobile gaming company was anticipating a $1B offering.
Playtika is the latest mobile gaming company looking to cash in on the increasing demand for mobile gaming as more customers are preferring to play at home due to pandemic-related restrictions. Previously, DraftKings and Gan Ltd., which are also direct players in the iGaming and online gambing market, completed their IPOs and their stocks are doing very well right now.