Company Overview

DoubleDown Interactive Co.  Ltd. (DDI) is a Republic of Korea based – online gaming company. The company is engaged in developing and publishing of digital games on mobile as well as web-based platforms.

Initial Public Offering

The company had launched its IPO on August 31, 2021, under the ticker DDI and had sold approximately 6.3 million American Depository Shares at $18 each. We had covered this IPO in our ‘Kalkine IPO Report’ on September 1, 2021 and concluded that this IPO was “Attractive” given its presence in the gaming space, aggressive growth outlook and launch of high-quality slot content and innovative games.

Daily Price Chart (as on November 15, 2021). Source: REFINITIV, Analysis by Kalkine Group

Conclusion

Investors who have invested into this IPO can consider ‘Exiting’ from their position at the closing price of $17.06 as on November 15, 2021, given:

Poor topline performance in Q3FY21: The company has recently released its third quarter earnings results, in which it has reported a topline degrowth of 6%. This was mainly because of easing of the stay-at-home initiatives.

Intense Competition: The company is operating in a highly competitive environment, where retaining a loyal consumer base and a decent market share could be challenging.

Range bound price movement: DDI shares have mostly traded in a very narrow range since its IPO. At the current price, it is hovering near its resistance level, indicating that the upside is limited.

*The reference data in this report has been partly sourced from Refinitiv.

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