Gamechanger for Sumo after strong float
SHARES IN games developer Sumo Group, which makes games such as Forza Motorsport
7 and HITMAN Episode 5, rose to a strong premium on their first day of trading.
Shares in the Sheffield-based firm jumped 15 per cent to close at 115p following the group’s flotation on AIM.
The initial public offering (IPO) price was 100p per share which gave the firm an initial valuation of £145m, following a successful £78.15m total fundraise.
Sumo develops games for Sony and Microsoft and is one of the largest independent games developers in the UK.
The fundraise raised £38.5m for the company and £39.7m for the selling shareholders. Sumo said the fundraise received strong demand from blue chip institutional investors.
Carl Cavers, founder of Sumo Digital and CEO of the company, said: “Admission to AIM this morning marks a major milestone in our journey.
“We have always strived for excellence within the business and our aim is to deliver the same level of excellence to the company’s investors, creating value in this exciting, fastgrowing industry.
“As we enter this new stage in our growth and development, I would like to thank everyone who helped Sumo Group achieve a successful flotation today, especially our talented people, who are the backbone and ingenuity behind this business.”
Sumo is hoping to increase its headcount and make new acquisitions after the flotation.
David Wilton, chief finance officer at Sumo, said that the capital raised from the IPO would allow the group to scrub debt from its balance sheet and begin to look at acquisitions and expansion on a global basis.
He said: “A business like ours needs to operate without debt on its balance sheet. We are looking to grow organically and keen to look at acquisitions. We bought Atomhawk in the summer and that is going really well.
“We will be looking for similar businesses who can add something.
“We work in an international marketplace and will go anywhere that makes sense. There are regions like North America where we are possibly under-represented.
“Same with the Far East. So there is a lot to go at.”
Admission to AIM marks a major milestone in our journey. Carl Cavers, founder and chief executive of Sumo Digital