U.S. mobile app and gaming company AppLovin Corp sold shares in its initial public offering (IPO) at the mid-point of its target range to raise $2 billion, a person familiar with the matter said on Wednesday. AppLovin, which is backed by private equity giant KKR & Co Inc, priced 25 million shares at $80 per share, the source said. It had set an IPO target range of $75 to $85 per share. The IPO values AppLovin at $28.6 billion.

The Palo Alto, California-based company is the latest player in the mobile gaming industry to eye a stock market listing, as demand for video games surges among consumers staying at home during the COVID-19 pandemic.

The IPO represents a big windfall for KKR, which acquired a minority stake in AppLovin in 2018 for $400 million, in a deal which valued the company at $2 billion. AppLovin abandoned plans to sell itself to Chinese buyout firm Orient Hontai Capital in 2017. A U.S. national security panel shot down the $1.4 billion deal on data security worries.


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Source: Reuters

Reporting by Echo Wang in Miami; Editing by Greg Roumeliotis