South Korea’s DoubleU Games will seek inorganic growth opportunities to diversify its portfolio beyond social casino games with fresh ammunition from the Nasdaq listing of its subsidiary DoubleDown Interactive (DDI) last month.
DDI acquired by DoubleU Games in April 2017 joined the Nasdaq at the end of August with an initial public offering price of $18 per share. Its market capitalization stands at nearly $900 million based on the IPO price.On Wednesday, DDI shares lost 0.87 percent from the previous session to close at $17.15.
DoubleU Games raised some $85.2 million from the IPO, bringing its total cash and cash equivalents on hand to about $340 million.
The local investment banking community said that DDI’s Nasdaq listing will enable DoubleU Games to make another leap forward as it plans to use the proceeds to finance innovative projects and M&A deals to drive growth beyond social casino games.
The company is preparing for a global launch of a new RPG, featuring a mixture of clicker and character collection games, late this month. It is also active in the buyout of a casual-game company.
DDI is a PC and mobile game developer. Its popular social casino game, Double Down Casino, was released in 2010.
DoubleU Games shares listed on the Kosdaq gained 2.5 percent to close at 61,300 won ($52.24) on Thursday.
By Kang Woo-seok and Minu Kim
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