14th May 2020 17:44
(Alliance News) - Keywords Studios PLC on Thursday said to intends to raise GBP100 million through a share placing.
The company - which provides services to video game makers - said it intends to raise the funds by way of an accelerated bookbuild in which Numis Securities Ltd and Citigroup Global Markets Ltd are acting as bookrunners.
The stock closed 3.3% lower at 1,540.00 pence each on Thursday in London, giving it a market capitalisation of GBP1.01 billion.
Keywords said a survey revealed that 29% of service fear a risk of insolvency should the Covid-19 pandemic continues for a further six months, adding that the new cash will allow it to take advantage of any such acquisition opportunities.
"The board believes that these businesses and their customers are now more likely to recognise the attractions of being part of a larger group with a more diverse customer base, broader geographic reach, better operational systems and a stronger financial covenant," it said.
Certain members of the board intend to subscribe for shares contributing around GBP50,000, the company added.
Separately, Keywords said that revenue in March and April were 7% above the same period in 2019. It added that it has seen increased demand for its services and it expects revenue to continue to increase as its testing businesses increase the numbers working from home and its audio business gains access to studios for voice-over recordings.
By Ife Taiwo; [email protected]
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