Mobile apps and game platform AppLovin raised $2 billion in its initial public offering (IPO). The funds from IPO is worth US $ 28.6 billion.
The Palo Alto, California-based company works on creating software to help developer, market, and monetize applications. AppLovin is said to have made 200 mobile games. Currently the platform has 410 million active users.
But investors weren’t immediately attracted to AppLovin. After listing a price of US $ 80 per share, a few moments later it closed down 18% to around US $ 65, putting its market capitalization at around US $ 23 billion.
Share Prices Dropped After IPO
Responding to the drop in stock prices after the IPO, AppLovin’s Founder and CEO, Adam Foroughi said he was more focused on the company’s future than current stock movements.
“What we’re trying to do is partner with investors who are looking at a three to five year plan. Every stock goes up and down. We can’t control the short term, but we can definitely control the long term results,” he said. 4/2021).
With the IPO funding, the company plans to invest in creating more original content. In addition, part of it will be used to make acquisitions. The acquisition plan continues the company’s plans since 2018.
Company Investment Reaches $1 Billion
By then the company has invested US $ 1 billion in 15 acquisitions and partnerships to grow its content library and software capabilities.
Recently, AppLovin announced it will purchase mobile app measurement and marketing firm Adjust.
In 2020, AppLovin generated revenues of US $ 1.45 billion, an increase of 46% from the previous year.
But it also reported a net loss of nearly US $ 126 million. AppLovin estimates the mobile app ecosystem will grow to US $ 283 billion by 2024, up from US $ 189 billion last year.
AppLovin, backed by private equity firm KKR & Co, the newest gaming company to go public. Following the popular children’s video game company Roblox (RBLX) and the developer platform Unity Software (UUU) which are also reportedly just doing an IPO.
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