Shares of AppLovin fell 18.50% to close at $65.20 at the end of its first day of trading. Shares were dropping 0.27% in after-hours at last check.
The stock began trading Thursday under the ticker symbol "APP."
AppLovin's initial public offering was priced at $80 a share.
AppLovin offered 22.5 million class A common shares at $75 to $85 and existing shareholder KKR & Co. offered 2.5 million shares.
Morgan Stanley, J.P. Morgan, KKR Capital Markets, BofA Securities and Citigroup are the lead underwriters for the offering.
The company raised $2 billion in the offering. The share sale gives AppLovin a market value of about $29 billion.
The Palo Alto, Calif., company is the latest player in the mobile gaming industry to list itself on the stock market, as demand for video games surges among consumers staying at home during the COVID-19 pandemic.
"AppLovin is critical to the success of mobile app developers, in particular mobile game developers, solving key marketing and monetization challenges," the company said in its filing.
AppLovin has more than 410 million daily active users on its platform and its apps consist of more than 200 free-to-play mobile games, including Word Connect, Slap Kings and Bingo Story.
The company posted a net loss of $260 million for 2018, net income of $119 million for 2019, and a net loss of $125.9 million for 2020.
Adjusted earnings before interest, taxes, depreciation and amortization came to $255.6 million, $301.2 million and $345.5 million in 2018, 2019, and 2020, respectively
Revenue in 2020 grew 46% from 2019 to $1.45 billion. Revenue in 2019 more than doubled (up 106%) year over year to $994.1 million.