You would have to be a gaming company and it would help if you were Chinese, if planning a successful IPO in these treacherous markets.
Changyou ticked both boxes and closed 25 per cent higher than its $16 placing on its Nasdaq debut on Thursday. It had already been priced at the top end of a $14 to $16 range, such was the demand.
Video games have appeared to be recession-proof in the US, while the Chinese market for online gaming is still showing tremendous growth, according to Charles Zhang, chairman of both Changyou and the Sohu.com portal which has spun off its gaming arm under him.
Tian Long Ba Bu, a martial arts game, was responsible for more than 90 per cent of Changyou’s revenues last year and will have a longevity similar to World of Warcraft’s, in Mr Zhang’s opinion.
“Our game is also becoming a global phenomenon, we’ve already exported it to Vietnam and Singapore and now we are exporting it to North America. We have found an office location in California and we are building up a team there,” he told me.
Just in case its popularity has peaked, Changyou has more games on the way – Duke of Mount Deer, Immortal Faith and Legend of the Ancient World.
They are pure fantasy but the profits from such games are anything but - Changyou reported net income of $108m on sales of $202m last year.
