News

New listing of the company HUUUGE, INC.

The company HUUUGE, INC. was newly listed on the GPW Main Market on 19 February 2021.
HUUUGE, INC. is the 435th company listed on the Main Market and the third new listing on the Main Market in 2021.

Key information:

* at the issue price of new shares and the selling price of shares in the IPO, i.e., PLN 50

The Issuer is a company under Delaware, USA law. Since HUUUGE, INC. is established in the USA, trade in its shares is subject to restrictions under U.S. securities law (“Restrictions Under US Securities Law”), i.e., restrictions under Category 3 of Regulation S (“Regulation S”) and Rule 144A under the United States Securities Act of 1933, as amended (“United States Securities Act”) because the Shares are equity securities offered by a non-reporting U.S. issuer outside the United States solely under the safe harbor requirements of Regulation S and with the exception of “Qualified Institutional Buyers” as defined in and under Rule 144A.

According to information provided by the Issuer, including information presented in the relevant prospectus, restrictions on trade in the shares covered by the application under U.S. securities law are limited and include territorial restrictions and subjective restrictions.

Issuer’s history
Huuuge, Inc. operates under the tradename “Huuuge Games”. The Issuer was established as a company under Delaware law on 11 February 2015. Its founder and general director Anton Gauffin set up a mobile game company Gamelion in northern Finland in 2002. The success and fast growth of Gamelion led to the opening of its first branch in Poland in 2006. Also in 2006, Gamelion reached the first milestone and released the football game 3D Fifa Soccer for Nokia Symbian, opening long-term beneficial collaboration with EA Mobile.

Issuer’s business
The Group is a global developer and publisher of free-to-play games for mobile devices and online platforms. The Group regularly ranks as a top 50 global mobile game producer by revenue according to App Annie and a leader in social casino games. According to App Annie, the Group is one of the fastest growing developers of mobile games by revenue growth. The Group redefines this category of games and offers a unique experience to gamers globally. The Group develops and publishes games with uncomplicated mechanics which are perfect both for short games and longer sessions.
The Group prioritises social aspects under the motto “Play Together”. The social nature of the Group’s games enables gamers to chat, play and compete in real time. The idea of playing together is the core of the Group’s game design approach.
The Group’s product portfolio includes many games, including social casino games: Huuuge Casino, Billionaire Casino, and Stars Slots Casino, casual games such as Coffee Break Games, Traffic Puzzle, Transport it!, Bow Land, and Trolls Pop, as well as one game in the soft launch phase: Huuuge Bingo Saga, and two games at an early phase of development: Luna’s Quest Bubble Shooter (formerly known as Huuuge Bubble Pop Story) and Solitaire TriPeaks: Adventure Journey. The Group’s flagship games are Huuuge Casino and Billionaire Casino.
The Group offers games on many platforms including Apple App Store, Google Play, Amazon Appstore as well as Facebook. The platforms generate nearly all revenues of the Group from microtransactions and attract new game users to the portfolio.
The business of the Group relies on three main business lines: Mighty, Brave and HuuugeX, which represent the flagship social casino games (Mighty), casual games in the publishing business (Brave), and innovative next-generation casual games (HuuugeX).

Public offering:
The final price of offered shares and the final number of offered shares were set in the Offering after Institutional Investor bookbuilding on 5 February 2021.

Number of shares offered in the Offering: 33,316,686
Number of shares sold in the Offering: 22,016,586
Number of new shares offered in the Offering: 11,300,100
Number of shares offered to Institutional Investors: 31,650,852
Number of shares offered to Individual Investors: 1,665,834

Issue / selling price of shares: PLN 50.00.

On 10 February 2021, 33,316,686 Offered Shares, including 11,300,100 New Shares and 22,016,586 Sold Shares, were allotted as follows:

• 1,665.834 Offered Shares were allotted to Individual Investors, where only New Shares were allotted to Individual Investors;
• 31,650,852 Offered Shares were allotted to Institutional Investors, where both Sold Shares and New Shares were allotted to Institutional Investors.

The reduction of Institutional Investors’ subscriptions was approx. 96.96%. Consequently, all Offered Shares which were subscribed were allotted.

Public offering value: PLN 1,665,834,300 including:

• new issue value (raised by the Issuer): PLN 565,005,000
• sold shares value (raised by the selling shareholders): PLN 1,100,829,300

Purpose of the issue:
The Company is planning to invest net receipts from the issue mainly as follows:

• approx. 90-95% for acquisitions of other businesses and investments in other businesses or assets;
• approx. 5-10% to finance further long-term growth including: development of new games and functions of existing games, marketing and user acquisition costs relating to the development and maintenance of a user base, and further development of the game publishing business.