The last dozen or so months has been an endless series of problems for CD Projekt. At the end of 2020, the valuation of the shares of the Warsaw company on the stock exchange broke PLN 400, thanks to which the creators of The Witcher trilogy became the largest company listed on the WSE – defeating such state giants as PKO BP, PZU or Orlen.
Everything changed with the unsuccessful premiere of Cyberpunk 2077. Although the game received great reviews among journalists who tested its version for PC, it quickly turned out that the title works much worse on PlayStation 4 and Xbox One consoles.
Value of CD Projekt Investing.com
Although the company apologized to players, launched the largest refund program in its history, and began intensive work on patches to fix the most serious bugs in the game, the milk has already spilled. The producer’s patch stuck to CD Projekt, which failed the players’ expectations.
All this also translated into problems on the stock exchange. Although Cyberpunk 2077 recorded very good sales results (suffice it to say that the game earned itself before the premiere), the value of the company’s shares on the stock exchange was consistently falling from month to month.
Today there is no trace of stock market records. On Friday at 10:00 am, the company’s stock was trading at PLN 97.4. This means that their value has decreased fourfold in less than two years.
The king is dead. Long live … zombies
All this, of course, translated into a gigantic decline in the market capitalization of the entire company. This week’s CD Projekt pricing fell below PLN 10 billion. This means that the company dropped out of the group of 20 largest companies listed on the WSE.
CD Projekt’s troubles were used by its Wrocław rival, Techland. As calculated by “Puls Biznesu”, the market value of the creator of the “Dying Light” series today amounts to PLN 10.6 billion. However, it should be clearly stated that this is an estimate. A company chaired by the well-known businessman Paweł Marchewka, it is still refusing to enter the stock exchange.
With the redemption of 15 million shares for a consideration of PLN 900 million, one share is valued at PLN 60. Assuming the number of the company’s shares at 175.94 million, the implied valuation of Techland is PLN 10.56 billion. The same valuation is obtained in the three subsequent redemption variants
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However, not all experts seem to agree with these calculations, as evidenced by, for example, a comment by Paweł Biedrzycki, editor of the Strefainwestorow.pl website, posted on Twitter.
It’s amazing that the media so mindlessly repeat the stories that Techland is worth more than CD PROJEKT
– wrote Biedrzycki.
The fact is that the real value of Techland will be known only when the company decides to enter the Warsaw floor. Until then, comparing CD Projekt and Techland will be like comparing apples with pears.
The industry has been talking about Techland’s stock exchange debut for a long time. Last year, the ISBtech service (IPO – Initial Public Offering) and adjusting its structure to the requirements of the stock regulator.
Since then, there has been silence on the subject.
Techland ignores questions about the IPO. In the company’s announcements and in the statements of its president, it is in vain to look for indications that it is getting ready for a stock exchange debut. There were suggestions in the media that if Techland decides to IPO at all, it will rather not bet on the Warsaw Stock Exchange, but on the Amsterdam stock exchange, as was the case with InPost’s IPO.
Source: Gazeta
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
