Free-to-play games company Kabam has said it is now worth around $700 million and  expects its revenue to increase by more than 65 per cent this year.

The San Francisco-based company said it has a $50 million cash pile and expects to generate revenue of more than $300 million in 2013, up from $180 million in 2012. Revenue grew by more than 70 per cent in 2012.

The valuation announcement comes after a group of investors launched a secondary offering for common stock totaling $38.5 million, allowing employees to sell their shares to these investors.

Kevin Chou, CEO, said that in the past 12 months, Kabam has launched a successful game publishing and platform business in North America, bringing 20 “high quality titles” to market.

He added that the company is beating its targets for games developed by Kabam Studios and third-party games published via Kabam Publishing.

The company has successfully transitioned from generating most of its revenue from Facebook games a few years ago to making much of its money through selling virtual goods in its free-to-play mobile games.

Chou has said in the past that he expects an IPO by the end of 2014. Reports suggest Kabam’s rival King has begun hiring banks with a view to an IPO.

Kabam raised $85 million in its most recent funding round in May 2011, with a valuation of $525 million. Investors include Google Ventures, Warner Brothers, MGM and Intel.