Gdańsk company’s launch on stock exchange is largest EVER in history of gaming businesses
BoomBit’s launch on the Warsaw Stock Exchange (WSE) is the largest in history for a gaming company.
Despite unfavourable market conditions and a general downward trend on the day, BoomBit shares rose from their opening price of 19 PLN to over 22 PLN.
In total the Gdansk-based company obtained 35.2 million PLN through their share issue.
At the WSE debut, delighted founder and co-CEO Marcin Olejarz said: “We recorded 1 million downloads of Idle Coffee Corp."
Their latest release ‘Idle Coffee Corp’ surpassed 1 million downloads in less than five days and if the remaining games they release this year have similar success they should join their current portfolio in generating growing monthly revenues.
This success can be seen as part of the reason for the share price rise.
When BoomBit announced the share issue they said it was to help fund user acquisition.
They have already developed ten new games which they will release for free in the hope that users will pay for additional content and functionality as well as earning from in game advertisements.
The company has had big success internationally with titles such as Darts Club, Tiny Gladiators 1 and 2, Tanks A lot and Dancing Line.
While the overall value of the gaming market continues to grow it is being fueled by the rise in mobile gaming.
In 2016 the mobile gaming market was worth $43 billion and in 2018 that had grown by nearly 50% to $63 billion and is projected to continue to grow at the rate of about $10 billion each year for the next three years.
In their prospectus BoomBit wrote that they expect to have 10 games generating at least $300,000 per month and two generating over $1 million in the next two to three years.
If they are able to come close to this target then the share price will likely continue to rise.