The angry birds at Rovio Entertainment Oy are set to lay a golden egg for the company’s founders.
The firm is planning an initial public offering as early as next month that could value the maker of the Angry Birds mobile games and movie at about $2 billion, said people familiar with the matter.
The company could raise about $400 million from a local market listing, the people said, asking not to be identified as the details aren’t public. No final decisions have been made and the company could also choose to stay private for longer, they said.
A listing would test investors’ appetite for entertainment software, a group whose shares have declined an average of 18 percent from their offer prices following IPOs this year, according to data compiled by Bloomberg.
That’s because mobile game makers often struggle to replicate the success of initial blockbusters. King Digital Entertainment Plc, the creator of Candy Crush, was acquired for a 20 percent discount to its IPO price in 2015 amid revenue declines. And Netmarble Games Corp., the maker of the Lineage and Stone Age mobile games — and South Korea’s biggest listing in seven years — has declined 17 percent since its shares started trading in May.
A $2 billion valuation would crystallize a $1.4 billion fortune for board director Kaj Hed, according to the Bloomberg Billionaires Index. He holds about 69 percent of Rovio after investing 1 million euros ($1.2 million) more than a decade ago into the company co-founded by his nephew Niklas Hed.
Proceeds from an IPO could also help the company fund the “Angry Birds Movie 2,” planned for 2019. The company’s first film in the franchise, released last year, made about $350 million in worldwide box-office sales. Rovio is also focusing on fueling demand for game titles such as Battle Bay and newer versions of Angry Birds.
Rovio reported revenue growth of 34 percent for 2016 to 190.3 million euros and earnings before interest and taxes of about 17.5 million euros compared with a loss in the previous year.
