Firebyte Games more than doubles early investors’ money on the first day of trading on BVB

Romanian mobile game developer Firebyte Games (FRB) made its debut on the Bucharest Stock Exchange’s AeRO market on Tuesday, April 6.

The company’s shares opened at a price of RON 1.48, 2.6 times higher than the price paid by the investors who participated in its private placement in February – RON 0.56 per share. In the first hour of trading, 4.6 million Firebyte shares changed their owners, representing 13% of the company’s total number of shares and more than half of the 8.8 mln shares sold in the private placement. The average price per share was RON 1.3185, 2.35 times higher than the private placement price.

After the first hour of trading, the price stabilized under the level of RON 1.3 per share. At this price, the company’s market capitalization is close to RON 45 mln (EUR 9.1 mln).

Firebyte Games develops mobile games in partnership with external partners, based on revenue-share agreements and casual games that it publishes on its own. Its best-known game is Castle Siege, released in 2018. In 2020, the company recorded operating revenues of RON 1.5 mln (EUR 0.3 mln), an EBITDA of RON 448,000 (EUR 91,000), and a net profit of RON 343,000 (EUR 70,000).

The company has ambitious targets for the next five years, partly based on increasing its team with the money raised from investors in February. Firebyte targets total revenues of RON 11.7 mln (EUR 2.38 mln) this year and a net profit of RON 1.3 mln. In 2022, it aims to double its revenues to RON 22.7 mln and more than triple its net profit to RON 4.45 mln.

By 2025, it forecasts revenues of RON 38.6 mln and a net profit of RON 9.17 mln, according to information included in the listing memorandum.

The company’s biggest shareholder is BRK Financial Group (BRK), with a 48% stake, followed by asset management company SAI Broker – 15%, and local investor Adrian Andrici – 12%.

(Photo source: Firebyte Facebook page)