- Mighty Kingdom shares fell 8% post listing on the ASX.
- The game developer has raised AU$18 million through its IPO.
- The company has reached a deal with a LEAF Mobile subsidiary to develop a mobile game for global release.
Game developer Mighty Kingdom made a muted debut on the Australian Securities Exchange (ASX) on Wednesday, with its stock listing at AU$0.33, a 10% premium from its offer price of AU$0.30 per share. Post listing, the stock slipped in red and declined as much as 8.33% to AU$0.275 on the ASX. The stock was listed on the ASX with the ticker “MKL”.
In the opening trade so far, the stock hit a high and low of AU$0.330 and AU$0.275, respectively. At the time of reporting, MKL share price was quoting at AU$0.280, down 6.67% against the offer price. As many as 6,177,537 equity shares have changed hands on the counter on the ASX, so far.
Mighty Kingdom is the second company to list on the ASX this week. On Tuesday, Latitude Financial Group, a leading Buy Now Pay Later (BNPL) company, had a decent first day of trading with its stock rising 3.846% to close at AU$2.70.
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Mighty Kingdom raises AU$18 million via IPO
The Australia's largest independent game studio raised AU$18 million through its initial public offer (IPO). The company issued 151.7 million fully paid ordinary shares at an offer price of AU$0.30 apiece, giving the company a valuation of AU$45.5 million.
The company intends to use the IPO proceeds to accelerate its growth strategy as well as development and launch of its own original games.
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Ahead of the IPO, the company raised AU$4 million in pre-initial public offering (pre-IPO) from institutional, family and sophisticated investors.
Established in 2010, the Adelaide-based games developer has released more than 50 games, including the popular Shopkins, LEGO Friends: Heartlake Rush, Gabby’s Dollhouse, Wild Life and Ava’s Manor. Besides, it has produced games under licence with many entertainment companies such as Snapchat, Disney, LEGO, Sony, Funcom and Moose Toy (Shopkins). It has a team of more than 100 employees with significant experience across mobile and console platforms.
The company is now focusing on developing its own games in-house as people are spending more time playing games online due to the pandemic-induced restrictions.
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Signs Multi-Year Contract with East Side Games on Debut
Mighty Kingdom has entered into a partnership and publishing agreement with East Side Games, a subsidiary of leading free-to-play mobile game group LEAF Mobile Inc., to co-develop a mobile game for global release in FY22.
Canadian game developer East Side Games has developed and published several successful mobile games such as Archer: Danger Phone, It’s Always Sunny: The Gang Goes Mobile and Roll for Adventure: Idle RPG.
The collaboration involves a multi-year agreement to develop a mobile game for a well-known science fiction franchise. Mighty Kingdom will develop the game in-house utilising East Side Games’ core proprietary software and publishing capabilities.