Playtika, an Israeli mobile gaming company, has gone public on the NASDAQ exchange. The IPO held yesterday has given the company an $11 billion valuation. It raised $1.9 billion at $27 per share. This was several dollars higher than the expected $22-24 price range.
Playtika is now trading under PLTK.
This hugely successful IPO gives Playtika the highly coveted membership in the $10 billion plus market cap club for Israeli companies. Israeli energy company SolarEdge just recently reached the top of that list with a market cap of $17.8 billion, leaping ahead of cybersecurity firm Check Point which stands at $17.7 billion.
In spite of the huge IPO Playtika still lags way behind those two companies on the list of highest valued companies. It is also behind healthcare company NovoCure at $16.8 billion and Nice Systems at $15 billion.
The difference between valuing a firm based on its investments to date and its market cap is immeasurable. A market cap tells us the total value of a firm from by simply multiplying its stock price by the total stock as a share of the company. A startup’s value is based on an assessment of how much investors are willing to pay per percentage in the company, not on its actual assets or revenues.
Headquartered in Herzliya, Israel, and founded in 2010, Playtika Holding Corp. is a leading mobile gaming company and monetization platform with over 35 million monthly active users across a portfolio of games titles. Playtika was among the first to offer free-to-play social games on social networks and, shortly after, on mobile platforms. Playtika has over 3,700 employees in 19 offices worldwide including Tel-Aviv, London, Berlin, Vienna, Helsinki, Montreal, Chicago, Las Vegas, Santa Monica, Newport Beach, Sydney, Kiev, Bucharest, Minsk, Dnepr, and Vinnytsia.
The company’s offering held 18,518,500 shares of common stock offered by Playtika itself and an additional 50,981,500 shares of common stock offered by an existing stockholder. Playtika will not receive any proceeds from any sale of shares by the Selling Stockholder. The underwriters have a 30-day option to buy an additional 10,425,000 shares of common stock from the Selling Stockholder at the initial public offering price, less underwriting discounts and commissions.