Unity Software has filed an amended S-1 form with the U.S. Securities and Exchange Commission for its initial public offering. The company intends to price its 25.0 million shares in the range of $44 to $48 apiece, with an overallotment option for an additional 3.75 million shares. At the maximum price, the entire offering is valued up to $1.38 billion. The company intends to list its shares on the New York Stock Exchange under the symbol U.
The underwriters for the offering are Goldman Sachs, Credit Suisse, BofA Securities, Barclays, William Blair, Oppenheimer, Piper Sandler, Stifel, Wedbush, Academy and Siebert Williams Shank.
This company operates one of the world’s leading platforms for creating and operating interactive, real-time 3D content. The platform provides a comprehensive set of software solutions to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, personal computers, consoles and augmented and virtual reality devices.
As of June 30, 2020, the firm had roughly 1.5 million monthly active creators in over 190 countries and territories worldwide. The applications developed by these creators were downloaded over 3 billion times per month in 2019 on over 1.5 billion unique devices.
Unity has built its reputation in gaming, and its scale and reach in this industry are significant. In 2019, on a global basis, the company estimates that 53% of the top 1,000 mobile games on the Apple App Store and Google Play and over 50% of such mobile games, PC games and console games combined were made with the Unity platform.
The firm’s revenue grew from $380.8 million to $541.8 million for 2018 and 2019, respectively, representing year-over-year growth of 42%. At the same time, Unity generated net losses for 2018 and 2019 of $131.6 million and $163.2 million, respectively.
Unity intends to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures. The company also intends to use some of the proceeds to pay down its debt.