Angry Birds maker Rovio moves forward with $1 billion IPO
Angry birds game
The company, whose business is recovering after a tough couple of years, announced its long-awaited initial public offering (IPO) this month
Finnish mobile gamesmakerRovioEntertainment Ltd set apricerangeon Friday for its planned listing that would value themakerof "AngryBirds" at up to $1.1billion, well below potential values cited in media reports.
The company, whose business is recovering after a tough couple of years, announced its long-awaited initial public offering (IPO) this month, saying it was aiming to boost growth and to take part in gaming industry consolidation.
Initial media reports had said the company could be valued at up to $2billionin the flotation, though analysts had already questioned whether that could really be achieved.
The preliminarypricerangeof 10.25 euros to 11.50 euros per share announced on Friday would giveRovioa market value of 802 million to 896 million euros, or $950 million to $1.1billion.
"If it had been as rumoured, it would have been way too high," said analyst Atte Riikola from Helsinki-based equity research firm Inderes.
"Looking at sales, the valuation pitsRovioat the same level as it peers, but includes profit growth expectations."
Rovio, whose games have been downloaded 3.7billiontimes, grew rapidly after the original "AngryBirds" game was launched in 2009.
ButRoviowas slow to respond to a shift to freely available mobile games that make revenue from in-game purchases. It's business quickly declined as rival games such as Supercell's "Clash of Clans" and King's "Candy Crush Saga" took over.
Roviobooked an operating loss and cut a third of its staff in 2015. However, sales are now recovering on the back of the 2016 release of the 3D movie "AngryBirds", as well as new games.
The company expects to sell about 55 percent of its shares in the flotation, raising 438 million to 488 million euros. Only 30 million would go intoRovio's coffers, with most going to its major owners, including Trema International and venture capital firms Accel Partners and Atomico.
Trema, which is owned by Kaj Hed, the uncle ofRovioco-founder Niklas Hed, is expected to keep a stake of 37 percent after the listing, down from 69 percent now,Roviosaid.
The subscription period starts on September18 with trading expected to be on the Helsinki bourse's pre-list on September 29 and on the main list on October 3.