Australian video game company PlaySide studios is poised to become one of the largest independent games studios on the ASX after confirming earlier rumours of an IPO.

The company brought in revenues of $7.7 million through 2020 – marking an increase of 56% on the previous financial year – and recorded a 30% boost in daily active users.

And the Australian Financial Review reports its $73 million float on the ASX – at an issue price of 20 cents per share – will make it the largest non-gambling gaming stock on the market.

This includes smaller players in the video game space such as iCandy, which posted revenues of $2.2 million in 2019.

PlaySide CEO Gerry Sakas told the AFR the company is “extremely passionate” about making games, but first and foremost, the company is focused on the business side of the industry.

“We are extremely focused on making money. And that’s how we’re going to grow”.

Mr Sakkas made a point of PlaySide’s collaborations and partnerships with other businesses worldwide – including Disney and Nickelodeon.

“We’re not just game developers coming up with game ideas, we really are working with Hollywood, speaking with them every day, and pitching for big contracts,” he said.

The IPO comes at the tail end of a year which saw gaming stocks skyrocket as coronavirus lock-downs forced people to find new ways to socialise and entertain themselves.

Coronavirus-related restrictions and workplace changes have been a net-benefit for most tech stocks, but that momentum is beginning to fade and take the sheen off early risers like Amazon and Zoom.

Both companies are struggling to maintain the growth they experienced at the height of the pandemic, while esports and gaming stocks show no signs of slowing down anytime soon.

If you want to stay up to date on PlaySide Studios’ company activities you can register on their Investor Portal.

Reach Markets have been engaged by PlaySide Studios to assist with private investor management.

Sources:

• Tech stocks lead the way to COVID-19 recovery
• Meanwhile, esports and gaming stocks are pumping to record highs
• Playside Studios gears up for ASX debut
• Game on! Playside Studios lines up $50m ASX listing
• iCandy Interactive’s Masketeers game hauls in $1 million revenue in record time
• Video Games Are Being Played At Record Levels As The Coronavirus Keeps People Indoors