June 3 (Reuters) – Blackstone-backed Liftoff Mobile said on Wednesday it has raised $437 million in its U.S. initial public offering, as a busy summer for listings gathers pace and encourages more companies to test investor appetite.
The Redwood City, California-based company sold 19 million shares and priced its offering at $23 per share, above targeted range of $20 to $22 apiece.
The IPO valued it at $3.83 billion, according to outstanding shares disclosed in its IPO prospectus.
The listing comes amid a challenging backdrop for software firms, many of which have seen investor enthusiasm tempered by uncertainty over how AI could alter competitive dynamics and future earnings.
However, buoyant equity markets and a series of well-received offerings have supercharged IPO activity, setting the stage for one of the busiest summers for listings in years.
The company was formed when Blackstone combined its portfolio companies Liftoff and Vungle in 2021. It provides mobile app developers with marketing and monetization tools to acquire users, boost engagement and generate revenue.
The mobile advertising technology sector sits at the center of the app economy, providing software that helps developers attract users, measure advertising performance and generate revenue.
Demand for such tools has grown as companies spend more to stand out in crowded app stores, although the industry has been prompted to adapt to tighter privacy restrictions from platform owners and rapid changes in digital advertising driven by AI.
Liftoff will start trading on the Nasdaq on Thursday under the ticker symbol “LFTO”.
Goldman Sachs, Jefferies and Morgan Stanley were the joint lead book-running managers for the offering.
(Reporting by Manya Saini in Bengaluru and Natalia Bueno Rebolledo in Mexico City; Editing by Shilpi Majumdar and Sherry Jacob-Phillips)
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