Game Makes Market Return After 2012 Collapse
Video games retailer Game Digital is back on the stock market, two years after its collapse into administration and subsequent rescue.
Game, owned by US hedge fund Elliott Advisors, announced ahead of conditional trading this morning that the offer price for its flotation would raise gross proceeds of £121m - giving the firm a market value of £340m.
The offer was said to be fully subscribed.
The Initial Public Offering on the London Stock Exchange marked a new chapter for Game after the UK and Spanish arms were rescued from administration.
Game collapsed in 2012 with shareholders receiving nothing while 2,000 staff lost their jobs.
It was a casualty of not only the-then slump in high street spending but also a business model that left it with high rent bills and little access to the digital marketplace.
A number of key suppliers, including Electronic Arts, had refused to distribute major titles to the chain over cash flow fears.
Elliot Advisors has since slashed 300 poorly-performing stores and its new management team, led by former HMV executive Martyn Gibbs, has been credited with boosting sales and profits.
Mr Gibbs said today: "Game Digital is a profitable and cash generative business with a great team, strong supplier partnerships and exciting digital growth opportunities.
"These fundamentals have enabled us to attract 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."
However, there was concern raised over the timing of the flotation and Game's past history.
Speaking after an hour's trading, Mark Priest, head of index and equity markets at ETX Capital, told Sky News: "It's come in at the offer price and not done a great deal.
"It's once bitten twice shy with a company that has been in administration in the past.
"You look at yesterday's 40% fall at ASOS and the shine has been slightly taken off online retailers. I think we're going to see the same with this stock."