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DoubleDown Interactive aims to raise $126.3m as US IPO launches

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DoubleU Games subsidiary DoubleDown Interactive launched its initial public offering (IPO) on the Nasdaq exchange in the US with the aim of raising up to $126.3m.

The business offered 5,263,000 in American depositary shares (ADSS) – each made up of 20 common shares – as part of the IPO, while an unnamed selling shareholder also offered 1,053,000 ADSs.

The estimated price range per ADS is $18 to $20, meaning if DoubleDown was able to sell all the ADSs as planned, it could raise as much as $126.3m.

Riley Securities acted as the sole bookrunner for the proposed offering, while CBRE and Northland Capital Markets served as co-managers.

DoubleDown had been planning for the IPO for some time, last month revealing that it had filed for the IPO on the Nasdaq exchange.

As previously disclosed, funds from the IPO will be used for general corporate purposes but may also be required to pay legal costs.

In July, the operator issued a press release to quash media reports that some DoubleDown executives had illegally sold shares, arguing the claims were “groundless”. In addition, the operator has faced class-action lawsuits in the US.

DoubleDown first announced its plans to raise around $100m via on IPO IPO in June of 2020, with the sums raised intended to support strategic acquisitions and repaying its financial investors.

However, just a month later, it announced that the effects of the novel coronavirus (Covid-19) pandemic meant that it would put its listing plans on hold due to economic uncertainty.

DoubleU later revived the plans to spin the DoubleDown business off and launch an IPO, but had to seek a new underwriter, after claiming its initial representative had unnecessarily delayed the process.