DoubleU subsidiary DoubleDown Interactive has filed for its initial public offering (IPO) on the Nasdaq exchange, from which it expects to receive proceeds of $91.4m.
The business said the offering would begin “as soon as possible” after the filing is approved. It will trade under the ticker symbol DDI.
It will offer 315,800 common shares, each made up of 20 American Depositary Shares (ADS), or 6.3 million ADS in total.
Each ADS is set to be priced at between $18 and $20, resulting in offering proceeds between $113.7m and $145.3m. DoubleDown said that, assuming a price in the midpoint of this range and after deducting listing costs and fees to underwriters, it expects to earn $91.4m from the IPO process.
Funds from the IPO will be used for general corporate purposes, but may also be required to pay legal costs. Earlier this month, 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.
In its prospectus, DoubleDown said that the growth of mobile content, the growing longevity of games and the success of the free-to-play model were all reasons to be confident in its continued success.
In addition, it said that in a world where scale is increasingly important, a business with the ability to invest resources into research, development and marketing would have a clear advantage.
It added that for the six months to June 30, 2021, its revenue is expected to fall between $188.7m and $190.2m, up between 7.8% and 8.5% from 2020.
DoubleDown’s plans for an IPO have repeatedly stalled. DoubleDown first announced its plans to raise around $100m via the Initial Public Offering (IPO) in June of 2020, with the sums raised intended to support strategic acquisitions, as well as repaying 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.
However, DoubleU later revived the plans to spin the DoubleDown business off and launch an IPO.
Last month, it reaffirmed its commitment to begin the offering, but said that while almost all necessary steps have been taken, it was forced to terminate its contract with the underwriter responsible for listing due to delays.