Huuuge Games readying IPO inspired by CD Projekt performance - sources

11 Bit Studios SA

12/02/2020 16:24

WARSAW, Feb 12 (Reuters) - Mobile games applications
provider Huuuge Games is preparing for an Initial Public
Offering (IPO), most likely in Warsaw, encouraged by the
performance of Poland's best known video games maker CD Projekt
 CDR.WA , banking and broking sources said. 
    The Warsaw bourse has faced a decline in turnover and has
struggled to attract new listings as companies can often find
cheaper funding via other routes.
    But the global success of CD Projekt, whose market
capitalisation has risen almost 20 times in the last five years
to 29.77 billion zlotys ($7.63 billion), has made the Polish
gaming sector attractive for investors. 
    "Huuuge Games is heading towards the stock exchange," said a
person familiar with Huuuge plans, who wished not to be named.
The person added that the IPO will most likely include up to 40%
of existing shares.
    Another source confirmed Huuuge Games was preparing for an
IPO this year. 
    A spokeswoman for Huuuge Games declined to comment. 
    Huuuge Games, whose revenue amounted at 221 million zlotys
in 2018, is also looking for a full-time investor relations
director based in Warsaw, according to an announcement published
on a Polish popular job search website on Feb.2. The deadline
for applications is Feb. 13.
    "Ideally served as the IR Director or pre-IPO consultant to
a public Polish company, before during and/or after IPO," one of
the requirements for the job said. 
    Poland has developed into a leading video game exporter due
to low labour costs, a young educated workforce and a thriving
gaming tradition rooted in the Communist era.  urn:newsml:reuters.com:*:nL8N29Q4FE
    The combined value of the listed gaming companies leapt 82%
to more than 32 billion zlotys last year, led by CD Projekt, 11
bit studios  11B.WA , PlayWay  PLWP.WA  and Ten Square Games
 TENP.WA , according to Warsaw bourse data.
    "Global funds are interested in Polish video games sector.
CD Projekt has done a good job and Poland is now associated with
a place, where one can make decent money on video games
producers," said Grzegorz Miechowski, chief executive at 11 bit
studios.
    
($1 = 3.8993 zlotys)

 (Reporting by Agnieszka Barteczko and Anna Koper; editing by
David Evans)
 ((marcin.goclowski@thomsonreuters.com;))