Midlands software developer to list with value of £280m
THE West Midlands software developer behind the official Formula One computer game is set to list with a valuation of £280 million.
Codemasters, which has around 370 staff at bases in Birmingham and Southam near Leamington Spa, will float on the AlM stock market on Friday (June 1).
The placing of the sale shares will raise £170 million for the selling shareholders and the new shares will generate £15 million for the company.
Reliance Big Entertainment, the firm’s India-based majority owners, will net £159.9 million with the remaining £10.1 million going to the executive directors and senior management team.
Reliance Big Entertainment will retain a 30 per cent stake once trading has commenced.
The company intends to use the funds generated by the placing to provide it with additional working capital, recruit new talent and extend the reach of its existing franchises onto more platforms.
Codemasters was founded in 1986 by brothers David and Richard Darling but they sold their shares in the firm in 2007.
It also has an office in Runcorn, Cheshire, and an art production facility in Kuala Lumpur and employs a total of 500 staff in the UK.
Among Codemasters’ other motorsport games are DiRT, originally launched in 1998 as Colin McRae Rally, and OnRush, a new arcade game being released in June.
Revenue in the year to April 2018 hit £63.6 million, more than double what it posted in 2015/16.