Game valued at 340m for IPO

Game has announced the price of its shares for its impending flotation on the London Stock Exchange next week.

Stocks in the video game retailer will be available to buy from June 11th and the company announced a valuation of £340 million ahead of the event.

Shares in the firm will be offered at 200 pence per ordinary share and Game is hoping to raise at least £121 million for the company's cash stocks and its existing shareholders.

Martyn Gibbs, chief executive of Game Digital, said: "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 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."

Turnaround

The share sale will complete a remarkable turnaround for Game, which was on the brink of going under during the recession. But the last couple of years have seen a vast improvement in the health of the business and relisting on the London Stock Exchange shows how far the company has come in recent years.

Hedge fund Elliott Advisors is set to retain a significant stake in the business, as it already holds a 90 per cent share in Game's stocks.

Game was one of a string of well known British high street companies to have faced serious financial issues as a result of the recession and its impact on the country's economy. Various famous names went into administration during this testing period, with Game among those to have successfully bounced back from its issues.

Shares in the video game retailer are set to be offered towards the low end of analyst expectations next week, but £340 million is still a surprisingly high valuation for a firm that almost closed down a few years ago.

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