GAN Ltd., formerly GameAccount Network, launched its initial public offering Tuesday to rave investor reviews — and a surging share price.

After successfully raising $54 million by offering 6.4 million shares at $8.50, GAN Ltd. (Nasdaq: GAN) shares shot up after the opening bell.

Shares jumped more than 60% to trade at $13.68 by 1:15 p.m. EDT.

But the big question is whether investors should buy GAN Ltd. now, or wait?

What is GAN Ltd.?

The company, based in the United Kingdom, builds out software-as-a-solution products geared toward the online casino and sports betting sector.

It’s GameStack platform is billed as a one-stop-shop, offering age verification, payments and more to prospective online casinos.

GAN Ltd. lists simulated gaming partners such as San Manuel Indian Bingo & Casino in California, Borgata Hotel Casino & Spa in Atlantic City, New Jersey, and WinStar World Casino in Oklahoma.

It also works with Paddy Power, Betfair and sports betting site FanDuel — all owned by Ireland-based Flutter Entertainment (Over-the-Counter: PDYPY).

About GAN’s IPO

Last week, GAN said it planned to sell 6.38 million shares, priced between $6.50 and $8.50 per share.

It wound up selling at the high end of that range after its IPO roadshow — sparking interest from other investors when the IPO went live Tuesday morning.

Initially, the company planned to only sell about 4 million shares in that range. By increasing the number of shares offered before the IPO launched, GAN was betting high on itself.

The pre-IPO sale banked GAN $54.2 million.

It moved from the London Stock Exchange to the Nasdaq to broaden its investment potential.

In the last 18 months of being traded on the LSE, GAN traded between a high of $311 set on April 30, 2020, and a low of around $67 set in May 2019. Its market capitalization was listed at $238.9 million.

According to its IPO, GAN has annual sales of $29.9 million and its 2019 annual net income was $1.7 million.

Is GAN a Buy?

While GAN has enjoyed a nice IPO bump, it’s probably best to wait this out.

Remember, any investor who bought the stock before it went public cannot sell that stock for a specific time period. That can range from three months to two years, and it’s referred to as the lock-up period.

Usually, after that time, there is a bit more stability and the share price may be a lot lower than when the IPO came out. Conversely, it could be the opposite, so there is a risk.

However, one thing to keep in mind is if those inside investors keep their stock even after the lock-up period, it could be a good sign that the company is sustainable. On the other hand, if inside investors start offloading stock the day the lock-up period ends, that could be a bad sign.

If GAN is a good investment, it will survive those market fluctuations and be just as good after the lock-up period as it was on its first day on the stock market.

Be cautious. It certainly doesn’t mean that GAN is a bad company, but it could be a better one later.