Mobile games app provider Huuuge Inc. confirms Warsaw IPO plans

WARSAW (Reuters) – Mobile games applications provider Huuuge Inc. plans an initial public offering on the Warsaw Stock Exchange, the U.S.-registered company said on Monday.

It confirms an earlier Reuters report about Huuuge, which has a significant base in Poland.

The global success of another Polish games maker, CD Projekt (CDR.WA), has made the Polish gaming sector attractive for investors. CD Projekt’s share price has risen by more than 18 times in the last five years and its market capitalisation is now 42.4 billion zlotys ($11.49 billion).

Huuuge Inc. said it has submitted an IPO prospectus to Poland’s financial market regulator KNF, but provided no details regarding the share offer or its timetable.

“We consider the public offer as one of our potential strategic options,” Huuuge Chief Executive Anton Gauffin said in the company’s statement.

The group said it generated revenue of around $260 million in 2019. It employs over 600 people in 12 offices around the world.

Its listing will be a boost for the Warsaw Stock Exchange (GPW.WA), which has seen turnover decline and has struggled to attract new listings for years as companies can often find cheaper funding via other routes.

Warsaw has seen two small IPOs this year, both by video games companies, as investors bet on increased interest in gaming during lockdowns due to the coronavirus.

Poland has emerged as a leading video games exporter thanks in part to low labour costs, a young educated workforce and a gaming tradition rooted in the Communist era.

Reporting by Agnieszka Barteczko; Editing by Susan Fenton

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