Game valuation set at £340m in return to market

 
Harriet Green
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GAME Digital will sell its shares for £2 apiece, it said yesterday, at the lower end of the projected range and giving the video games retailer a valuation of £340m as it prepares to return to the stock market.

The group itself had initially banked on a £400m initial price offering (IPO), and estimates had been at between 200p per share and 212p per share.

But with several recent IPO’s performing poorly over the last few weeks, and a day after a rather dire share slump in the retail sector, Game’s modest figure did not come as too much of a surprise.

Game’s order book has already covered, predominantly by long only institutions.

Elliott Capital Advisors, the US hedge fund, bought Game stores out of administration in 2012 and owns more than 90 per cent of the firm.

The float will mean a windfall payment for the fund, which is selling down its stake, leaving the firm with a free float of at least 35 per cent.

The video game retailer reported £586.4m of revenues in the six months to 25 January, from £427.3m a year earlier, following an aggressive restructuring and rebranding programme.