Sheffield games developer Sumo Digital has been valued at £145million after its initial public offering (IPO) was priced at 100p per share for listing on London’s junior market on Wednesday.
Sumo Digital, which makes games including Forza Motorsport 7 and HITMAN Episode 5, said the placing of ordinary shares had raised about £38.5m, while a vendor placing had raised about £39.7m for selling shareholders.
The company’s management and funds managed by private equity Perwyn LLP will retain a 43% stake. Sumo Digital, which develops games for Sony and Microsoft, was founded in 2003 and is one the biggest independent games developers in the UK.
The proceeds of the offering will be used to cut debt and as additional working capital. Zeus Capital was the sole bookrunner of the offering.
Carl Cavers, founder and CEO of Sumo, said: “This is a significant step forward in Sumo’s journey to become a global leader in premium development and creative services to the video game and wider entertainment industries.
“We have had an overwhelmingly positive response to the IPO, which has been very well supported by blue chip institutional investors.
“Our people are our business. We believe our teams are very well positioned to lead the way in one of the world’s most exciting creative industries. Being a quoted company in a fast-growing tech sector will, we believe, allow us to execute our strategy, whilst continuing to put quality and creativity at the forefront of the products and services we deliver.”
