South Korean game developer SHIFT UP is exploring new ventures, including a PC version and a sequel to Stellar Blade, alongside its new cross-platform project, Project Witches. Its initial public offering (IPO) filing on the Korea Composite Stock Price Index (Kospi) revealed these developments.
SHIFT UP’s filing disclosed that Project Witches is in its early stages, aiming for a global launch across console, PC, and mobile with cross-play by 2027. Described as a “next-generation mega subculture IP,” it seeks to surpass the success of Goddess of Victory: Nikke, with similar games being Genshin Impact and Fate/Grand Order. SHIFT UP plans to boost development in 2024 by hiring new talent.
Stellar Blade: PC Version and Sequel Under Consideration
The IPO document also mentions that plans for a PC version and a sequel to Stellar Blade are under consideration. However, no release date has been set. The document emphasizes SHIFT UP’s strategy to develop successful new IPs independently of existing ones, fostering sustainable growth.
Post-launch plans for Stellar Blade include introducing new gameplay elements, downloadable content, and potential new IP collaborations. The company’s global one-build approach ensures simultaneous global updates, providing a consistent gaming experience and rapid content deployment at a low cost.
SHIFT UP is eyeing an IPO on the main Kospi in June, targeting an enterprise value of 3.48 trillion won ($2.6 billion). The developer will issue 7.25 million new shares, aiming to raise between 340.7 billion won and 435 billion won.
Lead managers Korea Investment & Securities Co. and NH Investment & Securities Co. estimate SHIFT UP’s value based on a 39.25 times price-earnings ratio, comparing it to global peers like Square Enix Holdings Co. and Cyberagent Inc.
Tencent’s Stake and Financial Performance
Tencent Holdings Ltd. owns about 40.1 percent of SHIFT UP, while CEO Kim Hyung-tae holds 45 percent. SHIFT UP’s value increased 75 percent over the past six months due to record earnings and successful games. In 2023, SHIFT UP posted an operating profit of 111 billion won, up 328 percent year-on-year, and revenue of 168.6 billion won, up 155 percent.
If SHIFT UP goes public, employees could gain significantly from stock options. The company has granted 4.99 million shares via options since 2016, with 1.39 million shares yet to be exercised. Employees could earn up to 82.6 billion won by exercising these options, based on the 60,000 won upper price band.
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