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KKR - KKR & Co Inc News Story

$57.68 -0.4  -0.7%

Last Trade - 06/05/21

Sector
Financials
Size
Large Cap
Market Cap £24.02bn
Enterprise Value £65.56bn
Revenue £7.24bn
Position in Universe 388th / 6854

UPDATE 2-KKR-backed AppLovin shares fall in Nasdaq debut

Thu 15th April, 2021 6:14pm
(Add CEO quotes, updates shares)
    By Echo Wang
    April 15 (Reuters) - Shares of mobile app and gaming company
AppLovin Corp  APP.O  fell as much as 16.6% in their Nasdaq
debut on Thursday, valuing the KKR & Co Inc-backed business at
around $24 billion. 
    It is a sign that the rampant investor appetite in recent
months for new technology stocks, which has led to several large
first-day trading gains, may be slowing. 
    Palo Alto, California-based AppLovin's shares opened at $70,
below its initial public offering price of $80, the mid-point of
the company's target range. 
    The stock traded as low as 66.69 per share. At 1:24 p.m. 
eastern time, AppLovin shares were trading at $68.31 apiece,
giving the company a market capitalization of $23.9 billion.  
    Despite the price drop, the IPO represented a big windfall
for KKR  KKR.N , which acquired a minority stake in AppLovin in
2018 for $400 million, in a deal that valued the company at $2
billion.
    The listing comes as hundreds of private companies are
seeking to capitalize on the record boom in U.S. capital
markets, having raised well over a $130 billion through IPOs and
SPAC listings so far this year, according to data from Dealogic.
    AppLovin is the latest player in the mobile gaming industry
looking to cash in on the surge in demand for video games from
people staying at home due to the COVID-19 pandemic.
    "We see this opportunity to invest more in original content,
and we felt like the time is right to come to the public
markets." Chief Executive Adam Foroughi told Reuters in an
interview.
    AppLovin's portfolio includes more than 200 free-to-play
mobile games, such as "Word Connect," "Slap Kings" and "Bingo
Story," which have drawn in more than 410 million daily active
users. AppLovin has been profitable since it was founded in 2012
as a mobile games advertising platform. 
    

 (Reporting by Echo Wang in Miami; Additional reporting by
Sohini Podder in Bengaluru; Editing by Aditya Soni, Ramakrishnan
M. and Steve Orlofsky)
 ((E.wang@thomsonreuters.com))
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