KKR-backed AppLovin raises $2 billion in IPO -source

Playtika Holding

15/04/2021 24:24

By Echo Wang
    April 14 (Reuters) - U.S. mobile app and gaming company
AppLovin Corp  APP.O  sold shares in its initial public offering
(IPO) at the mid-point of its target range to raise $2 billion,
a person familiar with the matter said on Wednesday.
    AppLovin, which is backed by private equity giant KKR & Co
Inc  KKR.N , priced 25 million shares at $80 per share, the
source said. It had set an IPO target range of $75 to $85 per
share.
    The IPO values AppLovin at $28.6 billion. 
    The source requested not to be identified ahead of an
official announcement. AppLovin did not immediately respond to a
request for comment.
    The Palo Alto, California-based company is the latest player
in the mobile gaming industry to eye a stock market listing, as
demand for video games surges among consumers staying at home
during the COVID-19 pandemic.
    In the past 12 months, the likes of Playtika Holding Corp
 PLTK.O , Roblox Corp  RBLX.N  and Unity Software Inc  U.N  have
gone public.
    The IPO represents a big windfall for KKR, which acquired a
minority stake in AppLovin in 2018 for $400 million, in a deal
which valued the company at $2 billion.
    AppLovin abandoned plans to sell itself to Chinese buyout
firm Orient Hontai Capital in 2017. A U.S. national security
panel shot down the $1.4 billion deal on data security worries.
    AppLovin now has over 410 million daily active users on its
platform and its apps consist of more than 200 free-to-play
mobile games, including Word Connect, Slap Kings and Bingo
Story.
    The company's shares are scheduled to begin trading on
Nasdaq on Thursday under the symbol "APP".
    Morgan Stanley, JPMorgan, KKR, BofA Securities and Citigroup
were among the underwriters of the IPO.

 (Reporting by Echo Wang in Miami
Editing by Greg Roumeliotis)
 ((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging:
E.Wang@thomsonreuters.com@reuters.net))