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Singapore-based startup iCandy will go IPO, expects to raise $2.58M (Geektime (Israel))

by August 18, 2015 Industry

Singapore-based mobile games studio iCandy Interactive Ltd, has announced that it has just been approved by the Australian Securities & Investments Commission (ASIC) for an IPO on the Australian Stock Exchange at the end of September.

With this IPO, it will become the first Southeast Asian mobile games studio to go public. ASX-listed Fatfish Internet Group and several undisclosed high-net-worth Australia based investors.

iCandy is looking to raise up to an estimated $2.58 million or an estimated $3.32 million if over-subscription is factored in, over a market capitalisation of $33.1 million. iCandy will issue 17.5 million shares at $0.15 per share to raise up to $2.58 million together with one free attaching option for every one share subscribed for and issued.

In its prospectus, iCandy also stated that they might accept over-subscriptions of up to $735,600 through the issue of up to a further 5 million shares at an issue price of $0.15.  To date, the startup has published more than five games that have been featured by both Apple Appstore and Google Play, and generated more than 13 million downloads.

iCandy’s subsidiaries have received prior funding from both the Singaporean and Malaysian Government and is part of the Fatfish Internet Group. The game studio consists of two units, Appxplore in Malaysia and Kensington Ventures in Singapore.

On why iCandy chose to list on the Australian Stock Exchange, CEO of Fatfish, Kin-Wai Lau, explained, “ASX has been a growth market traditionally where retail and institutional investors alike understand growth potential of startup (from mining startups to tech startups) . I can safely say there are [is] more interest on tech companies on the ASX currently than SGX. From my observations, SGX investors tend to like REIT and dividend yielding traditional business.”

FatFish will handover 80% of iCandy at IPO. It plans distribute half of what it owns to its slightly more than 1,200 shareholders.

“While there are many mobile games companies that are listed in Japan and Korea, there are not that many mobile games companies listed in the Western world. So our challenge is to explain the model to regulators, investors and the stock exchange,” said Kin-Wai Lau.

With the mobile games revenue in Singapore expected to account for 41% of the total video games revenue by 2018 (which will be an estimated $223 million), iCandy is well poised to capitalize on this burgeoning market.

This post was originally published on e27.

Featured Image Credit: Screenshot/ iCandy