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Game Digital to reboot

Published: 23:59 19 May 2014 AEST

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The new issues pot continues to bubble with Game Digital, the successor to the computer gaming retailer GAME plc, announcing plans to float.

After going belly-up in March 2012, the company has been under new ownership and management since 1 April 2012.

It has successfully completed a significant restructuring. It now operates what it calls “an omni-channel model” with its shop portfolio, comprising 560 stores across the UK and Spain as at 16 May 2014 (down from 874 stores as at 28 January 2012).

The company is making money; it had underlying earnings (EBITDA) of £50.8mln in the six months to 25 January, 2014, though it is worth noting that includes the Christmas trading period.

Game Digital will seek a listing on the main market, with the share offer comprising a mixture of new shares and a sale of the existing shares by major shareholder Duodi Investments.

In all, the company expects to raise £12mln (net) from the issue of new shares, with the money to be used for “general corporate purposes”.

The company expects that the free float – the shares that are not held by committed long-term holders – will be at least 35%.

At or shortly after admission to the London stock exchange, the company intends to issue virtual loyalty shares with an aggregate value of £2 million to assorted loyal customers, with £1.8mln of that going to 18,000 of GAME's existing reward programme customers, with the remaining £200,000 distributed randomly among 2,000 currently active reward programme customers.

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