Malaysia-headquartered mobile games studio iCandy Interactive Limited, en route to listing on the Australian Securities Exchange (ASX) in two weeks, has completed the capital raising for it initial public offering (IPO). The IPO was oversubscribed by 92 per cent above its minimum capital raising requirement, raising over A$4.8 million ($3.38 million), the company said in a statement.
iCandy had initially targeted to raise $3.5 million for its IPO, as stated in its prospectus, with a minimum target of A$2.5 million ($1.76 million). The company said it had to have its allotment scaled back to $4.5 million to conform with the maximum allotment of 22.5 million shares of $0.20 per share, as per its prospectus. “At the IPO price, iCandy is being valued by investors at a market capitalization of A$44.8 million ($32 million). iCandy has now satisfied all the major requirements for the IPO and is expected to list on the ASX within the next two weeks,” it said.
iCandy is set to be the first pure-breed mobile games company to IPO from Southeast Asia. The company is backed by internet venture firm Fatfish Internet Group Ltd, which owns approximately 90.7 per cent of the undiluted issued share capital in iCandy, pre-IPO. Fatfish is also listed on the ASX. Post the IPO, the firm will own 85.5 per cent, or 192.5 million shares in iCandy.
Substantial shareholders in the company include Lau Kin Wai (11.8%), Ong Chang Jeh (11.3%), Navistar Cap Grp Ltd (10.7%), Chen Pang Hao (7.6%), Acquiniti Ltd (7.4%) and Micropia Sdn Bhd (5.7%), according to its second supplementary prospectus dated December 15, 2015. Lau is the chairman of iCandy while Ong is a director in Kensington Ventures. iCandy is the consolidated company of mobile games businesses Kensington Ventures and Appxplore, both of which Fatfish invested in in 2014.
iCandy’s mobile games development studios are located in Singapore and Malaysia, and have both received funding from both the Singaporean and Malaysian governments through various startup funding programmes. “We are very pleased that the fund-raising for the IPO has been very positive and is now completed. We look forward to the exciting next phase of the company once we get quoted on the ASX,” Lau said.
With the IPO, the company’s business plan is to develop and publish ‘freemium’ games for smartphones, which are free-to-download and free-to-play for players.
“The ‘freemium’ game model is proven to be a successful business model employed by many global mobile game companies. (We) plan to generate revenue through in-game purchases, mobile advertising, and game merchandise sales,” it said in its prospectus.
iCandy, which games have more than 10 million downloads, can potentially benefit from the growth of the global mobile games industry which is expected to be valued at more than $34 billion in 2016, according to data from the International Data Corporation’s (IDC) Worldwide Mobile and Handheld Gaming 2014-2018 report dated November 2014.
Keeping abreast with mobile game trends, the company conducts full scale pre-production study and research to understand gamers’ current interests and preferences prior to the development of each new game, to create games which are in line with market trends.
Although the group has the capability to publish its own games, it said it will continue to use other publishing companies to publish its games in new markets, particularly where the group has limited resources and faces challenges in respect of language barriers and market recognition.
Source and first seen: DealstreetAsia