IBK Investment & Securities predicted on the 16th that Double-down Interactive (DDI), a subsidiary of Doubleu Games, a social casino game company, will be able to reevaluate its value as it has completed its listing on the U.S. Nasdaq.
Investment opinion 'buy' and target price of 85,000 won were maintained.
Listed on the U.S. Nasdaq on the 31st of last month, DDI started with a public offering price of $18 and closed with a closing price of $17.75 and a market capitalization of about KRW 1 trillion.
"Document-type communication is currently underway in a 'silent period' of about one month after the listing," IBK Investment & Securities said. "We expect that the state of undervaluation will be eased as active IR activities will be carried out after this period.".
As a result of the listing of DDI, it is also expected to reassess the value of Doubleu Games.
"It is understood that the company has been strengthening its search for mergers and acquisitions (M&A) for social casinos and casual game-related companies since the subsidiary's listing," IBK Investment & Securities said. "The subsidiary's listing alone has brought in about 100 billion won, and it is expected to accumulate a total of 400 billion won in cashable assets by the end of the year.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
