Social gaming giant Playtika has launched its long-awaited initial public offering, with plans to sell 69.5m shares and raise up to $1.67bn.
The business itself will sell 21.7m shares of common stock, with a further 47.8m to be sold by majority stockholder Alpha Frontier Limited, priced in the range of $22 to $24m per share.
At the lower end of the price range, this would raise up to $1.53bn, and up to $1.67bn at the upper end, of which Playtika will receive between $447.4m and $520.8m. At the midpoint of this price range, the business is valued at approximately $9.70bn.
The underwriters will also be granted a 30-day option to buy an additional 10,425,000 shares of common stock from Alpha Frontier, potentially taking total proceeds from the IPO to $1.92bn.
The sale of the 47.8m shares by Alpha Frontier Limited, the holding company controlled by the Giant Investments-led consortium of Chinese investors that acquired the business in 2016, will see its holding reduced from 96.7% to 80%.
The stake held by Playtika’s management team would be reduced from 3.3% to 2.9% through the IPO, with public stockholders owning 17.1% of the business.