Frontier Developments today began its first day of dealings floating on the alternative investments market (AIM).
Headed by founder David Braben, Frontier – listed as FDEV on the AIM listings – has raised £4.0 million before expenses through a placing of 3,169,292 new Ordinary Shares. Frontier’s market capitalisation at the ‘Placing Price’ is £39.4 million.
Ordinary shares are being sold at £1.27 each. Admission to AIM comes in the wake of a pre-IPO fundraising that saw £2.8 million ammassed. Frontier is stated to be debt free, with £7.2 million of cash in reserve, and has entered into a revolving credit facility with Barclays Bank for £3 million, presenting a company in robust financial condition.
"I am delighted by the level of support Frontier has received and by the calibre of our investors, whose participation in our IPO is a strong endorsement of the growth potential we have identified," said CEO Braben.
"Frontier’s admission to AIM, along with the funding we secured earlier this year, will support our efforts to further enhance the capabilities of our technology platform Cobra as the expansion of games into the mainstream entertainment industry and advent of digital distribution provide significant opportunity to generate further growth."