Playtika, the Israeli mobile games company best known for its casino-themed games updated a Form S-1 filing with SEC on January 7, 2021. The filing said it plans to sell $1.6 billion worth of equity in its initial public offering (IPO) valuing the firm at $8.6 billion to $9.4 billion.
- Below you will find detailed instructions how to participate in the Playtika IPO (pre-IPO, offering price)👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Morgan Stanley and Credit Suisse in Playtika case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company sets an initial price and date for the stock to begin trading on a stock exchange.
Financial Indicators before Playtika IPO
The company has 3,700 employees, 40% of them working on games. It was founded in 2010 by Robert Antokol and Uri Shahak. Playtika is a profitable and growing company. For the 12 months ended September 30, Playtika generated $2.29 billion in revenues, $46.1 million in net income, and $815.2 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
The company has acquired 7 game studios, and seven of its top nine games are owned by the acquired studios. Those top nine games generate 97.6% of revenue. The company has 20 games, and Playtika said it has more titles in the top 100 games than anyone else.
Playtika IPO key facts
● Yield Potential: 31%
● IPO Date: January 14, 2021
● Exchange: NASDAQ (trading as PLTK)
● IPO Size: $1.60B
● Starting Price: $22.00 to $24.00
● Underwriters: Morgan Stanley, Credit Suisse, Citigroup, Goldman Sachs, UBS, Investment Bank, BofA Securities
● Earnings in 9 mon. 2020: $1.798B
● EBIT in 9 mon. 2020: $245M
● Net Profit in 9 mon. 2020: $16M
● Net Debt in 9 mon. 2020: $1.859B
How to Buy Playtika Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Playtika IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Playtika shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in the Playtika IPO before public trading:
Below we share the instruction how to participate in the approaching Playtika IPO using Freedom Finance (Tradernet platform). This marketplace is chosen as an example because Playtika is already listed there and available for participation now.
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Wait for a request to participate in the IPO — when Playtika IPO date is defined you will get a notification (email and SMS text message) from Freedom Finance to apply for the IPO.
- Submit a request to participate in the IPO — when you get a notification that you can apply to buy shares, go to IPO section of the platform > you will see the IPO listing with the share price set by the underwriter > click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start— a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 52%, past IPOs data.
When is the Playtika IPO date
Playtika's IPO was held on Jan 15, 2021
We will update when the exact Playtika date IPO is known – if you want to get notified please subscribe for updates here.
What is Playtika IPO price range?
Shares priced $27.00 p/share
Instruction How to Invest in Playtika after the IPO date (opening price)?
After the IPO you can buy Playtika stocks via stock trading platforms like eToro or Tradernet on the first trading day.
- Register here
- Fund your account
- On the first trading day go to Trade tab and type into the search Playtika or PLTK
- Enter number of stocks to purchase and click Buy
What is the Playtika's ticker (stock symbol)
Playtika's ticker is PLTK