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Shift Up Corp. Set for Public Listing in South Korea
Seoul-based game developer Shift Up Corp. is poised to go public in South Korea following an initial public offering (IPO) that secured 435 billion won (approximately $320 million). This marks the largest IPO for a gaming firm in the country in nearly three years.
Significant Stake and Strong Demand
Backed by China’s Tencent Holdings Ltd., which is its second-largest shareholder, Shift Up sold close to 7.3 million shares at 60,000 won each, hitting the top of its marketed price range. The offering saw robust interest from funds, with demand reaching 226 times the available shares, as disclosed in a recent filing.
Major IPOs in South Korean Gaming Sector
This IPO is the first for a South Korean gaming developer raising at least $50 million since 2021, when Krafton Inc. went public with a substantial $3.8 billion offering. Analyst Lee Jieun from Daishin Securities Co. noted in a buy recommendation report last month that there is significant potential for Shift Up’s stock to rise post-IPO, citing the company’s intellectual property, diversified platforms, and high success rate as standout factors.
Company Background and Financial Turnaround
Founded in December 2013 by Hyung-Tae Kim, who remains the largest shareholder post-listing, Shift Up is renowned for its mobile and computer games, such as “Goddess of Victory: Nikke” and the console game “Stellar Blade.” The latter has achieved top sales in the PlayStation stores of eight countries since its launch earlier this year.
Utilization of Proceeds and Recent Performance
The IPO proceeds are earmarked to diversify the company’s game portfolios. According to their prospectus, Shift Up managed to record a profit of 107 billion won last year, a notable turnaround from a 7.1 billion won loss in the previous year.
Comparative Performance of IPOs in South Korea
Shift Up’s IPO ranks as the second-largest in South Korea for this year, next to HD Hyundai Marine Solution Co.’s $553 million offering in the second quarter. Historical data compiled by Bloomberg indicates that recent IPOs in South Korea, raising at least $300 million, have ended their first trading session 62% higher on average.
Analyst Insights on Investment Potential
Arun George, an analyst from Global Equity Research who publishes on the platform Smartkarma, highlighted several factors making Shift Up an attractive investment. These include the company’s stellar game development track record, multiple growth drivers, high profitability, and efficient cash generation.
