[Click eStock] "DoubleU Games, Expecting Corporate Value Reassessment with Subsidiary's Nasdaq Listing"

[Asia Economy Reporter Minji Lee] IBK Investment & Securities predicted on the 4th that the corporate value of DoubleU Games will increase due to the Nasdaq listing of its subsidiary, DoubleDown Interactive.

Seunghoon Lee, a researcher at IBK Investment & Securities, said, "With the subsidiary's Nasdaq listing in July and the visible improvement in second-quarter performance, the corporate value is expected to rise more than before," adding, "Since the social casino company SCIPLAY, listed on Nasdaq, traded at PERs of 14.2 and 12.6 times in 2020 and 2021 respectively, there is room for further growth." Currently, DoubleU Games' PER is formed at 9.4 and 8.9 times during the same period.

DoubleDown Interactive expects a fair value assessment through its Nasdaq listing, which is its major revenue source in the U.S. Additionally, it plans to increase brand awareness within the global social casino market. The number of shares to be listed is 760,000, consisting of 400,000 new shares and 360,000 existing shares (Styx Special Situation Diamond).

After listing, the total number of shares will be 2,614,522, with DoubleU Games holding 57.3% and Styx Special Situation Diamond holding 13.5% of the shares. Based on the conversion price of 293,600 KRW for the convertible bonds of DoubleDown Interactive held by Styx, the total amount of the planned listing is estimated at 223.2 billion KRW (29%), and the amount for new shares is approximately 117.4 billion KRW (15%).

Researcher Seunghoon Lee explained, "The repayment of borrowings related to the acquisition of DoubleDown Interactive has been completed," and added, "Since the structure generates about 200 billion KRW annually in EBITA DL, further mergers and acquisitions and shareholder-friendly policies are also expected."