Member Article

GAME valued at £340 million in its flotation

GAME Digital plc, a retailer of video games in the UK and Spain, has announced the successful pricing of its initial public offering.

Based on the offer price, which has been set at 200p per ordinary share, the total market capitalisation of GAME at the commencement of conditional dealings will be £340 million.

The video games chain, which has 560 stores across the UK and Spain, has been owned by U.S. hedge fund Elliott Advisors since it bought the UK and Spain businesses out of administration in 2012.

The offer represents 35.5% of the enlarged issued share capital of the Company following completion of the Offer.

The offer is expected to raise gross proceeds of approximately £121 million for the Company and Selling Shareholder and the company expects to receive gross proceeds of £20 million from the issue of new shares in the Offer.

Martyn Gibbs, chief executive of GAME Digital plc said: “GAME Digital is a profitable and cash generative business with a great team, strong supplier partnerships and exciting digital growth opportunities.

“These fundamentals have enabled us to attract high quality investors who we welcome into our business.

We are a truly specialist retailer, with a loyal customer base, operating in a growing market. Our supplier partners are producing increasingly advanced gaming content, for which we will continue to develop and facilitate new ways to buy and play.

“The business is well-placed for the future.”

Photo: © Copyright Kenneth Allen and licensed for reuse under this Creative Commons Licence.

This was posted in Bdaily's Members' News section by Clare Burnett .