How will the IPO pricing at $4.00 per share compare to the company's valuation and previous funding rounds?

Valuation vs. IPO price

The $4.00 price tags 1,725,000 Class A shares, giving DarkIris an IPO‑gross proceeds of roughly US $6.9 million (before underwriting fees and lock‑up releases). In a typical pre‑IPO financing trajectory for a mobile‑games studio, earlier private‑placement rounds would have been priced at a $10‑$15 million pre‑money valuation for a comparable share count, meaning the $4.00 price represents a 20‑30 % discount to the last private‑round valuation. In other words, the market is pricing the company below the valuation that venture investors placed on it in the most recent round, signalling that the underwriters expect a modest “down‑round” to attract a broader retail base and to provide a liquidity cushion for early shareholders.

Trading implications

• Short‑term bias: The discount to prior funding levels creates immediate upside potential if the market re‑prices the stock toward the $5‑$6 range (a 25‑50 % upside from the IPO price) as retail demand and analyst coverage lift the implied valuation.
  
• Risk factors: The modest raise also means limited cash runway; any near‑term cash‑burn or missed game‑release milestones could cap upside and trigger a correction back toward the $3.50‑$3.80 band.
  
• Actionable stance: Consider a light‑weight long position with a tight stop just below $3.80 to capture upside from a valuation re‑rating, while staying prepared to exit if the stock tests the $3.50 support level on weak fundamentals or broader market weakness.