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Huuuge Steady in Debut After Warsaw’s Biggest-Ever Gaming IPO

Published 02/19/2021, 03:45 AM
Updated 02/19/2021, 04:27 AM
© Reuters.  Huuuge Steady in Debut After Warsaw’s Biggest-Ever Gaming IPO
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(Bloomberg) -- Huuuge (WA:HUGEP), a Polish developer of free-to-play mobile casino games, was little changed in its first day of trading in Warsaw, after Warsaw’s biggest-ever gaming industry listing.

Shares traded at 49.61 zloty as of 9:38 a.m. in Warsaw compared with the 50 zloty issue price in its initial public offering. The company and its owners raised 1.67 billion zloty ($445 million), with Huuuge becoming Poland’s second-biggest listed gaming studio after CD Projekt SA.

The IPO drew strong interest from retail buyers, who on average got 3% of the shares they subscribed for in the listing due to high demand. Due to legal restrictions, Huuuge shares can’t be traded via most Polish brokers’ mobile apps, which may affect individual investors’ ability to buy and sell the stock.

Huuuge’s debut cements Warsaw’s status as an incubator for gaming IPOs. Most recently, People Can Fly owner PCF Group SA floated in December, while four gaming companies started trading on the market’s NewConnect platform for smaller stocks this year. Though Huuuge is registered in the U.S., most of its staff is in Poland.

Huuuge’s 56% free float upon listing may help the stock to get into the mWIG40 Index for mid-sized companies quickly, which would drive more investor flows. It could be eligible to join Poland’s main WIG20 benchmark in the future, according to Pawel Sugalski, a fund manager at Rockbridge TFI SA.

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