DoubleDown Interactive, a subsidiary of Double U, will likely accept offerings as it filed for an initial public offering (IPO) on the Nasdaq exchange. Per DoubleDown, there will be a total of 315,800 common shares, made up of 6.3 million American Depositary Shares (ADS) in total. Mathematically, that makes each common share to be made up of 20 ADS. Additionally, the company’s expected proceeds are around $91.4 million.
As DoubleDown stated, each ADS will cost between $18 and $20 and the initial proceedings could be as high as $145.3 million. But, after all of the fees and deducting lining costs are taken out, the expected return would be $91.4 million.
DoubleDown Might Use the Funds on Legal Costs
The funds that DoubleDown will get from the IPO are likely to be used on legal costs. Recently, this operator faced some criticism after the media reported that its executives sold shares illegally. Moreover, the operator has battled class-action lawsuits on US soil.
DoubleDown, despite its legal battles, believes in its efforts and states that the growth of mobile content and the longevity of the games are factors that will contribute towards its success. To add to that, a business that knows how to invest its funds in marketing, development and research has a massive advantage.
This is also shown in the numbers. While its revenue is expected to fall as much as $190.2 million in the six months prior to June 30, 2021, it will still be higher by as much as 8.5% compared to the same period in 2020.
The Plans for an IPO by DoubleDown Have Stalled Since 2020
This is not the first time that DoubleDown has filed for an IPO. The company’s first plans were to raise around $100 million via an IPO in June 2020. But, after the world was caught off guard by COVID-19, the state of the market was very unstable, which is why the plans had to be put on hold.
Now, thanks to the fact that the world is slowly recovering from the pandemic and vaccines have hit the market, DoubleU revived those plans. However, due to several delays, the company had to terminate the contract with the underwriter who was responsible for listing.
Nasdaq is Always the First Choice
The reason why DoubleDown filed for an IPO on Nasdaq is that this is the second-largest stock exchange globally. The one feature that makes Nasdaq unique is that it does not have a physical presence. Each stock is traded electronically and traders of legal age can buy and sell shares at this platform. One interesting fact about Nasdaq is that it was the first e-stock market in the world in 1971.