Southeast Asian and Australian based Internet ventures investment and development firm Fatfish Internet Group is en route to making its first exit through an initial public offering (IPO), as its portfolio company iCandy Interactive Ltd has got approval from the Australian Securities & Investments Commission (ASIC) for a listing.
iCandy, slated for a September IPO on the Australian Securities Exchange (ASX), is looking to raise up to A$5 million ($3.68 million) with a market capitalisation of over A$45 million ($33.16 million).
It will be the first mobile games studio from Southeast Asia to IPO.
According to iCandy’s prospectus, the IPO involves the issue of up to 17,500,000 shares at an issue price of A$0.20 apiece to raise up to A$3.5 million together with one free attaching option for every one share subscribed for and issued.
Oversubscriptions of up to a further 5,000,000 shares at an issue price of A$0.20 per share (together with one free attaching option for every one share subscribed for and issued) to raise up to a further A$1 million may be accepted.
As such, the maximum amount that can be raised under this prospectus is A$4.5 million, it stated. iCandy’s IPO is targeted on September 21, 2015.
The mobile games studio has published more than five games that have been featured on both the Apple Appstore and Google Play, and these have generated more than 13 million downloads.
Fatfish told DEALSTREETASIA that part of iCandy’s plan is to look at acquisitions post-IPO to enhance its products and users base.
Fatfish CEO and director Lau Kin-Wai said iCandy had the track record as one of the leading mobile games studio group in Southeast Asia.
With the IPO, Lau believed iCandy can look to acquisitions for its future expansion. Lau also sits on the iCandy board as non-executive chairman.
“We are one of the very small number of studios that have 100 per cent of our games being recommended by either Apple iOS Appstore or Google Android Play. The IPO is an important milestone for iCandy. I am excited about the prospect of using the listed status of the company to explore potential acquisition post-IPO. “
Lau however did not specify if iCandy would look at Southeast Asia or Australia for acquisitions. It is noteworthy that Malaysia has been pushing its mobile games industry forward in the last few years.
Malaysia, which is Lau’s home country, is the second Southeast Asian games market, with total mobile games revenues reaching close to $97 million in 2014 and and due to increase up to $242 million by 2017, according to a post by Applift.
Fatfish had also earlier invested in another mobile games startup, Appxplore, whose games have hit over one million downloads. The firm acquired 70 per cent in Appxplore in September 2014 for $220,080.