Angry Birds Maker Rovio Planning IPO

Angry Birds Maker Rovio Planning IPO

The Angry Birds firm released a statement detailing its intentions, revealing that it is planning "a share issue of approximately €30m", which equates to $36m. Ultimately, the business shifted from pay-to-play, where players buy the video game, to a free-to-play model.

Looking ahead, the company is guiding for revenues and EBITDA to increase "significantly" this full year compared to the last, with a group operating operating margin of 30 percent.

Rovio is 69 percent owned by Trema International, a firm owned by Kaj Hed, the uncle of company co-founder Niklas Hed.

The financial disclosure form released by Rovio today indicates that the company saw revenues nearly double the first six months of 2017, compared to the same period in 2016.

"All of our recent launches - Angry Birds Evolution, Battle Bay and Angry Birds Match - have shown better performance in key indicators than any previously launched Rovio game", said Kati Levoranta, chief executive of Rovio. "The contemplated I.P.O. and listing are an important milestone in developing Rovio into an even stronger games-first entertainment company". Now the company will be hoping for a similar narrative as they get ready to go public. Of course, that franchise has birthed several mobile games, a movie - with a sequel on the way in 2019 - and tons of merchandise, but those picking up shares in the company may have their reservations about what more the company can offer.

The aim of the IPO is to enable Rovio to continue its growth, give it access to capital markets and "broaden its ownership base", as well as build on the company's brand awareness.

Mobile-game makers often struggle to replicate the success of initial blockbusters.

Last year, the Chinese internet giant Tencent paid $8.6 billion for a controlling stake in Supercell.

Shares are expected to be offered to private individuals and entities in Finland, Sweden and Denmark, along with institutional investors in Finland and internationally.

The company said it hopes the IPO will boost growth, strengthen brand recognition and allow it to use shares to make acquisitions.

Carnegie Investment Bank and Danske Bank are the joint coordinators of the offering.

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