Huuuge Games readying IPO inspired by CD Projekt performance - sources (updated)

11 Bit Studios SA

12/02/2020 17:08

(Updates with Huuuge Games comment)
    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
identified. The person added that the IPO would most likely
include up to 40% of existing shares.
    Another source confirmed Huuuge Games was preparing for an
IPO this year. 
    "We are considering various strategic options related to the
further development of Huuuge Games. No decisions have been
made...," a spokeswoman for the company told Reuters in an
e-mailed statement.
    Huuuge Games, whose revenue amounted to 221 million zlotys 
($56.62 million) 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 Thursday.
    "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 the 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.

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