UPDATE: GAME has contacted MCV with two points of clarification:
1. Elliot Advisors' current share isn't 99 per cent – it is 60 per cent. 35.5 per cent is now accounted for by the free float and 3 per cent for management/staff.
2. Elliot Advisors has already received the windfall payment, which amounted to £101m.
ORIGINAL STORY: Retailer GAME has priced today’s stock market flotation at 200p per share.
This represents a market cap of £340m – a number at the lower ends of pricing options circulated last week.
60,409,046 ordinary shares will be offered, accounting for 35.5 per cent of its share capital. This is expected to raise around £121m.
The stock went on sale this morning at 8:00am and at the time of writing is trading just under 200p.
GAME is 99 per cent owned by US hedge fund operation Elliot Advisers, with OpCapita’s Henry Jackson claiming the remaining one per cent. Elliot will receive a windfall payout as a result of the IPO.
The chain’s economic health is clear to see, but the bigger question will be how investors react to yet another retail IPO in a year that has already seen the likes of Pets at Home and Card Factory float and others such a Blue Inc prepare to do the same.
Part of the challenge will be convincing investors that retail remains an important component of the video games sector in a time where digital is consuming more and more of the market.
“GAME Digital is a profitable and cash generative business with a great team, strong supplier partnerships and exciting digital growth opportunities,” GAME Digital chief executive Martyn Gibbs said.
“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.”