Shift Up Corp., a prominent game developer, surged by as much as 49% on its debut trading day in South Korea following a highly successful initial public offering that raised 435 billion won ($320 million). This IPO marks the largest in nearly three years for a gaming company in the country.
The company’s shares reached a peak of 89,500 won, significantly surpassing its offering price of 60,000 won per share, which was at the top end of the marketed range. Demand for the IPO was exceptional, with funds seeking 226 times the number of shares available, according to recent filings.
Shift Up, backed by China’s Tencent Holdings Ltd. as its second-largest shareholder, distinguishes itself in the competitive gaming industry with its strong intellectual property, diverse platform presence, and impressive success rate, according to Lee Jieun, an analyst at Daishin Securities Co.
Founded in December 2013 by Hyung-Tae Kim, who remains the largest shareholder post-listing, Shift Up is renowned for popular titles such as “Goddess of Victory: Nikke” in the mobile and computer gaming spheres, and “Stellar Blade” in console gaming, which has topped PlayStation store sales in eight countries since its recent launch.
The proceeds from the IPO will enable Shift Up to further diversify its gaming portfolio, building on a solid financial performance that saw the company achieve a profit of 107 billion won last year, a significant turnaround from a loss of 7.1 billion won in the preceding year.
Shift Up’s IPO is not only a milestone for the company but also the largest by a South Korean gaming developer since Krafton Inc.’s $3.8 billion listing in 2021. Analysts foresee continued upside potential for Shift Up, buoyed by its strong track record in game development, robust growth drivers, and solid profitability.
The IPO success underscores South Korea’s prowess in the global gaming industry, with similar large-scale offerings historically yielding substantial first-day gains in Seoul’s trading market.
“The investment case rests on a stellar game development track record, several growth drivers, high profitability, and cash generation,” noted Arun George, an analyst at Global Equity Research.
