Facebook game DoubleU Casino maker aims to expand its business in social casino space.
Korean-based DoubleU Games Co. has unveiled its plan for an initial public offering (IPO) on the tech-heavy KOSDAQ in November. The company looks to raise around 250 billion won ($209.8m), the largest amount of initial funds raised for a KOSDAQ-listed company.
The company announced its plan to list its shares on the KOSDAQ in April due to Korean stock exchange’s relatively cheap operating expenses and better valuation.
Kim Ga-ram, chief executive officer of DoubleU, said that the funds will be used to beef up marketing and to diversify its target markets to Southeast Asia, Latin America and Russia.
“We have secured 15 million users in a 50 million-user market globally. To compete with bigger rivals and woo the remaining 35 million, we need sufficient funds,” Kim told Yonhap News
The company also aims for a 7% increase in global market share of the social casino game market over the next three years, from the current 3%, and a revenue target of 200 billion won for 2016.
DoubleU Casino is the only game developed in Korea on the global social network service. The game has drawn more than 15 million users from 220 countries over three years since its launch in May 2012. It ranked the eighth-most profitable game on Facebook in March, earning 8.8 billion won ($8.1 million). The company also posted 71.3 billion won (US$60.6 million) in revenue in 2014 and annual average growth rate of 317% for the past three years.
DoubleU Games is also expected to surpass 130 billion won revenue this year as it already reached 54.4 billion won in the first six months. The social casino game maker aims to compete with Israeli companies that lead the Facebook-based game market and to help other Korean companies join the global market.