Israel-based social casino gaming studio Playtika Holding Corp. said on Friday that it has confidentially submitted tender offer documents to the US Securities and Exchange Commission.
The news about the move comes after reports emerged last June that Playtika was in the process of contracting banks to prepare for an IPO in the United States.
Sources said the company was looking for raise about $ 1 billion and that it could be valued at around $ 10 billion in its IPO. Playtika is believed to be aiming to go public at the end of the year or early next.
The company was founded in 2010. It is based in Herzliya, Israel and is best known for develop and operate social casino games, as well as applications for poker and solitaire. Caesars Interactive Entertainment, a subsidiary of casino operator Caesars Entertainment Corp. (now Caesars Entertainment Inc.) bought Playtika in 2011 in a $ 130 million deal.
The rapid growth of the social casino sector in the last decade caused the value of the company to skyrocket. In 2016, it was bought by a Chinese consortium led by Giant Network Group Co Ltd and Yunfeng Capital, a private equity firm founded by Alibaba founder Jack Ma, by $ 4.4 billion.
Playtika seeks to go public amid IPO market recovery
Playtika is preparing to go public as the US IPO market experiences a significant rebound following the coronavirus-induced stock market slowdown.
He public offering for sale market began to thaw at the end of June, after a period of declining activity in April and May, as companies froze their plans to go public due to fears of a global recession.
Central bank stimulus measures and low interest rates eventually renewed the appetite for stocks and resulted in IPOs raising $ 122 billion globally for the first three quarters of 2020, the most in two years.
Playtika could be one of many tech companies that could benefit from the Covid-19 crisis.
It should also be noted that the company has also benefited from the increased demand for mobile games, including casino-style games, as consumers have stayed home during widespread shutdowns with the aim of interrupting the spread of the coronavirus.
As mentioned above, Playtika’s US IPO is likely to occur at the end of the year or early next. Currently, the company has more than 27 million monthly active players of all the world.
Playtika is the latest Chinese-owned company to seek listing in the US, despite the recently raised auditing standards in the country and the scandal involving the owner of Chinese coffee chain Luckin Coffee Inc. earlier this year.
In May, Luckin Coffee said Nasdaq had warned it of plans to delist it after revelations that some of its employees had made their 2019 sales at nearly $ 310 million.