The South Korean studio Shift Up has encountered difficulties in going public. They postponed the collection of preliminary stock applications from early June to the end of the month. The developers did this after financial authorities indicated 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 its revenue. 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 that the studio might do the same with other projects. Additionally, they are concerned that Goddess of Victory: Nikke and the recently released Stellar Blade are not published by Shift Up itself, but by other companies — Tencent and Sony.
Regulators have asked Shift Up to make changes to its securities report and provide investors with clearer information regarding the studio's business risks.
The exact date of the IPO will be known after the collection of preliminary stock applications. According to Korean media, the studio is expected to go public no earlier than mid-July. In March, it was reported that Shift Up's valuation after the IPO could exceed $2.3 billion.