The creators of Stellar Blade and Goddess of Victory: Nikke have postponed their IPO. The stock exchange had doubts about the company's stability
The South Korean studio Shift Up is facing challenges in going public. They postponed the collection of pre-order bids for shares from early June to the end of the month. Developers made this decision after financial authorities pointed out that Shift Up's business relies too heavily on Goddess of Victory: Nikke.
Goddess of Victory: Nikke
Currently, almost all of Shift Up's revenue comes from Goddess of Victory: Nikke — in the first quarter, the game generated 97.58% of their income. According to financial authorities, this poses significant risks.
Regulators also reminded that last year Shift Up unexpectedly shut down the popular game Destiny Child, indicating the studio might do the same with its other projects. Additionally, they are concerned that Goddess of Victory: Nikke and the recently released Stellar Blade are published not by Shift Up themselves, but by other companies — Tencent and Sony.
Regulators have asked Shift Up to make amendments to their securities report and provide investors with clearer information about the studio's business risks.
The exact date of the IPO will be announced after collecting the pre-order bids for shares. According to Korean media, the studio is expected to go public no earlier than mid-July. It was reported in March that Shift Up's valuation post-IPO could exceed $2.3 billion.
