AppLovin Offers Shares in IPO at Estimated $75 to $85

AppLovin's initial public offering could value the mobile application and gaming company at $30 billion.
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AppLovin said Wednesday it was offering 22.5 million Class A common shares in its initial public offering at an estimated $75 to $85 each, a deal that could value the mobile application and gaming company at $30 billion.

The Palo Alto, Calif., company said in a regulatory filing that a holder is also selling 2.5 million shares. And the holder gave the underwriters on option on 3.8 million more shares if demand for the deal requires.

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"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. 

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.

"Growth of the mobile app ecosystem benefits mobile app users, but makes it harder for mobile app developers, and particularly independent developers, to scale and succeed in a crowded market," the company said.

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The Washington private-equity firm KKR  (KKR) - Get Report is Applovin's biggest stakeholder, owning nearly 74% of the Class B shares. That stake gives KKR control of about 69% of the pre-IPO voting power in the company.

KKR bought its stake in AppLovin in 2018. The company had planned a $1.4 billion sale to Chinese buyout firm Orient Hontai Capital, but the transaction fell through due to regulatory concern.

The company said its business clients include "indie studio developers and some of the largest mobile advertising platforms."

"Our future success depends in part on our ability to acquire new business clients," AppLovin said. "We recently increased our focus on markets outside the United States to serve the needs of business clients globally."

AppLovin has received approval to list its Class A common stock on the Nasdaq Global Select Market under the symbol APP.

Morgan Stanley, J.P. Morgan, KKR Capital Markets, Bank of America Securities and Citigroup are lead bookrunning managers.

Separately, TuSimple Holdings, a self-driving-technology company, said Wednesday that it had launched the roadshow for its IPO.