Rovio Entertainment’s stock began trading today just slightly above its IPO offering price which was set well below the top of the range the company had been considering.
Rovio had announced recently that it was exploring pricing the shares between $10.23 per share and $13.72 per share. It was looking for a number that would allow it to raise $36 million from investors while issuing the fewest possible shares.
The final price ended up being $11.50 per share, valuing the company at $1.1 billion. By late morning, the stock was trading at $12.17 per share.
The biggest winner today is Kaj Hed, the company’s former chairman and owner of reportedly 69 percent of the company via his investment vehicle, Trema International Holdings, prior to the IPO. Rovio had said that Trema would sell 18.36 million shares, into the IPO. After the IPO, Trema will still hold 36.6 percent of the company’s stock.
Rovio has said it plans to use the money to expand its mobile gaming business and make acquisitions. The IPO comes after a strong turnaround this past year for Rovio following a couple of years of declining revenue and layoffs.