Tuesday 15 October 2019 2:20 pm

Animation firm DNEG eyes £150m London listing

Digital effects and animation company DNEG said today it was considering a London float to raise £150m.

The London-based firm said it was weighing a main market listing with plans to sell £150m-worth of new shares and an offer of existing shares to be sold by current shareholders.

DNEG has worked on films such as Interstellar, Harry Potter and Avengers: Endgame and was also involved in the hit TV show Chernobyl.

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The company has a workforce of 6,900, headquartered in London, with operations in the US, Canada and India.

Customers include Hollywood studios such as 20th Century Fox, Disney, Legendary Entertainment, MGM, Sony Pictures, Universal Pictures and Warner Bros.

It also works with Amazon, Netflix, the BBC, HBO and Sky.

For the year to 31 March its revenue was $309m (£244m), with profit of $20.7m. 

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Chief executive Namit Malhotra said: “This is a golden age for premium content as major markets re-establish their love for film, especially with the exponential growth of high-quality streamed content. 

“A London listing will continue our development as one of the world’s leading partners for the film, television and entertainment industries.”

The company said it would use the proceeds from the float to finance further growth plans and reduce net debt.

JP Morgan Securities is acting as sole sponsor and sole global coordinator, and Deutsche Bank, JP Morgan, Numis Securities, Santander and BNP Paribas will act as joint bookrunners if the listing goes ahead.