£217m flotation goes ahead for Nottingham video games developer

Following the intention to float announcement , Team17, the video games developer, based in Nottingham and Wakefield today announced the successful pricing of its initial public offering and conditional placing of 27,325,482 new and 37,849,200 existing Shares, together with institutional investors, to raise gross proceeds of approximately £107.5 million.

The Company’s market capitalisation on Admission, based on the Issue Price, is expected to be approximately £217 million.

The Company has conditionally raised net proceeds of £42.8 million, which will primarily be used to repay existing shareholder loans.

£59.4 million (net of expenses) has been raised for the selling shareholders.

Debbie Bestwick, the Company’s Chief Executive Officer, will retain a substantial shareholding in the Company, amounting to approximately 22.2% and LDC, the private equity arm of Lloyds Banking Group, will retain a shareholding in the Company of 16.6% of the Shares in issue following Admission. On Admission, management and employees will hold approximately 31.2% of the issued share capital of the Company.

The Directors believe that the IPO will enable the Company to invest in its future expansion, enhance its profile and provide the ability to incentivise key employees.

It is expected that dealings in the Shares on AIM will commence at 8.00 a.m. on 23 May 2018 and trade under the ticker TM17. Its ISIN number is GB00BYVX2X20 and its SEDOL is BYVX2X2.

The Placing saw strong demand from institutional investors with the book covered multiple times.

On Admission, the Company will have 131,288,276 Shares in issue and is expected to have a free float of approximately 49.6%.

Berenberg is acting as Sole Global Coordinator and Broker and GCA Altium as Nominated Adviser to the Company.