PlaySide Studios (ASX:PLY) share price doubles on ASX debut

The PlaySide Studios Limited (ASX:PLY) share price more than doubled on Thursday after completing its IPO…

| More on:
miniature rocket breaking out of golden egg representing rocketing share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The PlaySide Studios Limited (ASX: PLY) share price has landed on the Australian share market with a bang following the completion of its initial public offering (IPO).

At one stage today, the video game developer's shares were changing hands for as much as 41 cents.

This was more than double the IPO listing price of 20 cents.

At the time of writing, the PlaySide share price is up 65% from its listing price to 33 cents.

What is PlaySide?

Melbourne-based PlaySide is one of Australia's largest independent video game developers with over 52 titles developed.

This includes games based on original intellectual property (IP) and games developed with Hollywood studios such as Disney, Warner Bros, and Nickelodeon.

It operates in a mobile games market which is estimated to be worth $77.2 billion after growing at 13.3% year on year.

The PlaySide IPO.

PlaySide commenced trading on the Australian share market today following the completion of an IPO that raised $15 million from investors at 20 cents per share.

The company revealed that the IPO received strong support from a broad range of institutional and retail investors.

Upon listing, Playside will have approximately 366.5 million shares on issue, giving it a market capitalisation of $73 million based on the IPO price.

Where will it spend the IPO proceeds?

Management intends to use the funds raised from the IPO to secure the rights to develop mobile games from select media brands within its Brands & Licensing Division and expand its development team to support new original titles.

PlaySide will also invest additional resources in its data analytics team, sales and marketing teams, and user acquisition. In addition, it plans to open a business development office in Los Angeles when the risk from the COVID-19 can be appropriately managed.

Managing Director, CEO, and Co-Founder, Gerry Sakkas, commented: "PlaySide has in the past few years proven its ability to make games that millions of people love to play while sustainably building a profitable business on a global stage and, having now listed on the ASX, we believe we'll be able to scale our skills, science and art to unlock significant value for PlaySide shareholders."

"As a close team we are excited and motivated for the next phase of our journey and, as you can see from the business update today, we've continued our growth momentum through the IPO period and I look forward to updating you regularly on the rewards of our hard work," he concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Hands reaching high for a trophy with a sunset in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a cracking end to the trading week for ASX investors.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Share Gainers

Why ARB, Cleanaway, Hub24, and RPMGlobal shares are storming higher today

These shares are ending the week with a bang. But why?

Read more »

Five people in an office high five each other.
Technology Shares

5 best performing ASX 200 tech shares of FY25

Some of the technology sector's biggest names led the charge in share price growth last financial year.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX shares that rose 100%+ in FY25

Let's see why these shares delivered huge returns for their shareholders in the last financial year.

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a wild ride this Thursday.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Domino's, NRW, Pro Medicus, and WIA Gold shares are charging higher today

These shares are avoiding the market weakness and are pushing higher today. But why?

Read more »

Three scientists wearing white coats and blue gloves dance together in a lab.
Healthcare Shares

UP 127% in a year, why is the Pro Medicus share price rocketing higher again today?

ASX investors are sending Pro Medicus shares flying higher on Thursday. But why?

Read more »

Happy man working on his laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX roared higher this hump day.

Read more »