Codemasters To Have £280 Million Market Cap After AIM Float

Codemasters LR

Video games developer Codemasters Group Holdings PLC, based at Southam, Warwickshire, is expected to float on the AIM stock market on Friday, according to reports.

The company, whose parent company is Indian company Reliance Big Entertainment, has placed 7.5 million new ordinary shares and 85 million existing shares at 200 pence each as part of the company’s AIM stock market flotation, says Interactive Investor.

The issue of new shares will raise £15 million for the company, while the placing share sale will raise £170 million for selling shareholders.

Reliance first acquired a 50 per cent stake in Codemasters in 2010. The Indian company increased its stake in the games developer to 60 per cent in 2013.

Codemasters market capitalisation is expected to be around £280 million on admission. The company will have 140 million shares in issue and a free float of 66.1% on listing.

The company intends to use the proceeds from the stock listing to recruit new talent to grow games as a service revenue, marketing activities, extending reach of existing franchises onto more platforms and for further development of proprietary technology.

Codemasters has been making iconic games for over 30 years. It’s a world-leader in the development of racing titles, and is the official games provider for Formula One.

Shares are expected to start trading on Friday under the ticker CDM. Liberum Capital Ltd acting as nominated adviser and sole broker for the initial public offering.