US video game maker Devolver Digital made a shining debut on London’s junior AIM market this morning, as shares surged more than 15 per cent.
After listing at a placing price of 157p per share this morning, pitching its market cap at almost £700m, Devolver’s shares surged to 181p per share at midday, pushing its valuation up to almost £805m.
As the video game market continues to benefit from a pandemic-induced boom, Devolver raised almost £191m in the listing, with £36.5m going to the company.
CEO Douglas Morin said the company’s whole team were shareholders and would thus benefit from added liquidity from the IPO.
The company said the UK float would provide it with ongoing access to capital to help fuel its organic growth strategy and make acquisitions where it “sees a cultural fit.”
Through recent acquisitions, Devolver has its own-IP franchises, owns two UK studios, and a publishing brand called Good Shepherd.
The gaming company has 90 published titles under its belt, including Shadow Warrior 3 and Hotline Miami, and said it has a pipeline of more than 30 more games which are scheduled for release over the next two years or so.
“An IPO is the right choice for us to ensure our continued growth and support even more wonderful games,” said CEO Douglas Morin.
“Most importantly it will allow us to retain our culture. Being a public company gives liquidity to our amazing team, all of whom are shareholders. It also gives us access to capital markets to continue investing in organic growth and talent,” he added.
Zeus Capital is nominated adviser and sole bookrunner for the company’s IPO.