WARSAW (Reuters) – Mobile games developer Huuuge Inc. expects to raise up to $150 million from a new share issue as part of its planned initial public offering (IPO) in Warsaw, the U.S.-registered company said on Monday.
Huuuge, with a significant base in Poland, adds to a list of companies that have targeted IPOs as restrictions imposed due to the coronavirus crisis prompt more people to go online for entertainment, shopping and other needs.
Polish parcels locker firm InPost announced its IPO plans in Amsterdam as more shoppers order online. The firm is used in Poland by sellers on e-commerce platform Allegro, which debuted on the Warsaw Stock Exchange in October.
Huuuge, which submitted an IPO prospectus in August, plans to use the IPO proceeds on potential acquisitions and investment. It expects its free float to be more than 25% of the company.
Huuuge’s biggest shareholder is now its founder and Chief Executive Anton Gauffin, with shares representing 42% of total votes.
Credit Suisse Securities, Sociedad de Valores, S.A. and J.P. Morgan AG are acting as the joint global coordinators and joint bookrunners.
The group said it generated revenue of $244 million for the nine months of 2020 to Sept. 30 compared to $187 million in the same period of 2019. It employs more than 600 people in 10 offices around the world.
The gaming sector in Poland has attracted international investors on the back of the global success of Polish games maker, CD Projekt.
Poland has developed into a leading video game exporter due to low labour costs, a young and educated workforce and a thriving gaming tradition rooted in the Communist era.
Reporting by Agnieszka Barteczko; Editing by Edmund Blair