News Column

Game Digital Marks Turnaround As It Lists Again In London

June 6, 2014

Steve McGrath

LONDON (Alliance News) - Video game retailer Game Digital PLC saw its shares drop slightly below its initial public offering price in early conditional dealings Friday, after it listed with an initial market capitalisation of GBP340 million.

The company, which sells video games and consoles from shops and online in the UK and Spain, and who's IPO marks a turnaround of a business that collapsed just two years ago, priced its IPO at 200 pence, but was trading at 199.75 pence in early conditional dealings on the London Stock Exchange's main market.

The company said it expected to receive gross proceeds of GBP20 million from the IPO, while its selling shareholders will receive GBP101 million. The main seller is US hedge fund Elliott Advisors, which funded the acquisition of the UK and Spanish business out of administration in 2012.

The retailer, like most of the sector, was hit hard by the economic downturn and it collapsed two years ago after some suppliers refused to supply it due to increasing worries about its financial stability. Since being bought, it has slimmed down, shutting unprofitable stores and boosting its online operation.

It now operates from 560 stores in the UK and Spain, down from 874 stores in January 2012, and says it has 33% of the new video game market in the UK and a 35% share in Spain.

In the 26 weeks to January 25, it made revenue of GBP586.4 million, up from GBP427.3 million in the year-earlier period, while adjusted earnings before interest, tax, depreciation and amortisation were GBP50.8 million, up from GBP24.5 million.

"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," Game Digital Chief Executive Martyn Gibbs said in a statement.

Canaccord Genuity Ltd acted as Game's financial adviser, sole sponsor and joint bookrunner, and HSBC Bank PLC and Liberum Capital Ltd acted as joint bookrunners.

TBC Bank, based in the Republic of Georgia, Friday priced its initial public offering of global depositary receipts in London at USD13.00 per GDR, giving it an initial market capitalisation of about USD640 million.

It claimed that the offering is the largest IPO by a Georgian company. The total size of the offering was USD238.7 million, or USD262.6 million if an over-allotment option is exercised in full.

The bank raised approximately USD96 million in net proceeds, which it will use to grow its loan portfolio in the retail, SME and microfinance sectors.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

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