Mobile games developer iCandy Interactive is being spun-off by...

Mobile games developer iCandy Interactive is being spun-off by Fatfish Internet Group (ASX:FFG) as a separate company on the Australian Securities Exchange.

The company is seeking to raise up to $3.5 million through an initial public offer of 17.5 million shares priced at $0.20 each with a minimum subscription of $2.5 million.

 Oversubscriptions of up to $1 million will be accepted.

Proceeds will be used to accelerate growth of the company by funding the development of its existing and new mobile games titles and technology as well as marketing activities of the group’s mobile games.   

Worldwide mobile gaming is expected to be worth US$34.2 billion in 2016, up from US$21.5 billion in 2014.

iCandy is focused on ‘localisation’ of its games to the Chinese, Japanese and South Korean markets, as these are believed to be the faster growing markets in the Asia Pacific region.

The company’s business plan is to develop and publish ‘freemium’ games for smartphones, which are free-to-download and free-to-play for players.

This game model is proven to be a successful business model employed by many global mobile game companies.

It plans to generate revenue through the following approaches:
- In-game purchases with players able to purchase virtual items or currencies which are used within the company’s games to improve character levels, speed up the game progress and/or enhance playing experience;
- Mobile advertising, which allows iCandy to advertise third-party products and services in the company’s games; and
- Game merchandise sales.

iCandy is controlled by Fatfish which holds approximately 90.7% of the undiluted issued share capital. This will be reduced to a fully diluted stake of 76.5% following completion of the IPO.

The company expects to trade as ICI on the ASX.

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