Mobile apps and games platform AppLovin raised $2 billion in an initial public offering Thursday that valued the company at $28.6 billion.
The Palo Alto, California-based firm makes software to help developers market and monetize their apps, and it also has its own portfolio of more than 200 mobile games. AppLovin's developer software has more than 410 million daily active users, according to its regulatory filing.
But investors weren't immediately enthused about AppLovin, which is trading under the ticker symbol "APP." After listing at $80 per share, the midpoint of its estimated range, the stock closed down 18% at about $65, putting its market capitalization around $23 billion.
Founder and CEO Adam Foroughi told CNN Business he's focused more on the company's future than the present-day stock moves.
"What we were trying to do is partner up with investors who see the three- to five-year plan," Foroughi said. "Every stock goes up and down. We can't control the short term, but we can certainly control that long-term outcome and that's what we work really hard to do."
AppLovin, which is backed by private equity firm KKR & Co., is just the latest gaming company to go public, following kid-popular video game firm Roblox (RBLX) last month and developer platform Unity Software (UUU) in September, among others.
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