A giant leap for Oscar-winning firm

THE OSCAR-WINNING visual effects business DNEG has revealed plans to list on the London Stock Exchange.

Bosses at the company, which has won five coveted Oscars for its work on Blade Runner 2049 and First Man among others, plan to raise £150m from the listing.

The cash will be used to fund further expansion and pay down existing debts, DNEG added.

Namit Malhotra, chief executive officer, said: “This is a golden age for premium content as major markets re-establish their love for film, especially with the exponential growth of highquality streamed content.

“A London listing will continue our development as one of the world’s leading partners for the film, television and entertainment industries.

“Over the last five years, we have invested heavily in our workflow processes and bespoke technologies, enabling us to build DNEG into a global powerhouse, supplying visual effects services to the world’s largest entertainment markets. In addition to the recognition the London main market would give DNEG, we have a clear plan to invest the proceeds to further advance our ability to support the world’s greatest storytellers.

“We have built a recognised and trusted brand, along with a large, growing and loyal customer base across the major international movie studios in Hollywood and Bollywood, as well as the newcomers in the streaming space such as Netflix and Hulu.”

He also revealed that revenues for the year to March 31 hit 309 million US dollars (£245.5m) with profits of 20.7 million dollars (£16.5m), and adjusted pre-tax profits of 69.6 million dollars (£55.3m).

In the three months to June 30, revenues were 80.7 million dollars (£64.1m), with adjusted pre-tax profits of 17.6 million dollars (£14m).

The company hopes to cash in on the limited number of special effects providers capable of offering the scale and expertise needed on big-budget films and shows.

Once listed, bosses will issue new shares and intend to have a free float of at least 25 per cent of the company.

Mr Malhotra founded Prime Focus – DNEG’s parent company – in 1995 in Mumbai, India. It merged with London-founded Double Negative in 2014 and has won numerous awards for its work.

These include Baftas for Interstellar, Harry Potter And The Deathly Hallows Part 2, and Inception.

This is a golden age for premium content. Namit Malhotra, chief executive of DNEG

PICTURE: PA PHOTO/UNIVERSAL PICTURES/DANIEL MCFADDEN TAKING OFF: DNEG, which has won an Oscar for First Man, is to float on the London Stock Exchange as it aims for expansion.