Le amusement game IPO will be issued 7.7 million Class A outstanding shares

Netease Technology News July 29 news, according to foreign media reports, music tease game in the United States in August IPO, the issue price of 12 to 14 US dollars, up to raise funds of 124 million US dollars.

Le amusement game IPO will be issued 7.7 million Class A outstanding shares, the issue price of 12 to 14 US dollars per share, listed on the Nasdaq, underwritten by Credit Suisse and JP Morgan Chase. The base deal size is $ 108 million but could increase to $ 124 million after the greenshoe option was triggered.

Tencent owns music companies a 27% stake in games, is its largest shareholder. Cheetah is its private equity holder. Tencent and Cheetah will subscribe for 15 million US dollars and 8 million US dollars of Class A outstanding shares respectively after their listing.

Based on the issue price of $ 12 to $ 14 per share, Lok Tee's 2015E P / E is between 8 and 10.2 times its market capitalization of $ 660 million.

One of its most comparable companies is King Digital Entertainment, which owns the legend of candy crush and the company made an IPO in the United States early this year. But Amusement Games does not want to be compared to it, as King Digital Entertainment dropped 16% on the market and fell 18% by July 28.

Amusement game

Headquartered in Shenzhen, Lok Teo Games is one of the largest mobile game distribution platforms in the country with over 1 million monthly active users. For the first three months of this year, the company's net revenue was RMB33.2 million, compared with a net loss of RMB595,000 for the same period of 2013. Net revenue for the year 2013 was RMB27.8 million, and net loss for 2012 was RMB9.3 million. According to its prospectus submitted to the U.S. Securities and Exchange Commission, the IPO proceeds will be used for working capital, acquisition of gaming licenses and other intellectual property and for potential mergers and acquisitions in the future.

According to the China Internet Network Information Center (CNNIC), the number of mainland Internet users increased from 73.1 million in June 2008 to 463.8 million in June 2013, representing a CAGR of 44.7%. The increasing use of mobile Internet has led to the rapid growth of the mobile gaming market. According to CNNIC, the mobile game market soared from RMB3.3 billion in 2010 to RMB13.9 billion in 2013. It is estimated that by 2016, it will reach 42.7 billion yuan. (Bing Han)