Last close As at 05/08/2026
EUR1.37
▲ −0.02 (−1.37%)
Market capitalisation
EUR274m
Research: TMT
Media and Games Invest (MGI) has successfully completed its placing, announced on 29 September 2020, issuing 25m new shares at a price per share of SEK12.00 (€1.14/share) raising proceeds of SEK300m (c €29m). The placing price represents a c 10% discount to the two-day volume weighted average price. It increases the number of shares in issue by c 21% to 117.1m. Gross proceeds from the placing will be used to finance acquisitions of new franchises, game publishers and development studios, as well as to invest in organic growth. MGI expects to complete its dual listing on the Nasdaq First North Premier Growth Market in Stockholm on or around 6 October 2020.
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Media and Games Invest |
Placing and dual listing in Stockholm
Software & computer services |
Scale research report - Flash
1 October 2020 |
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Media and Games Invest (MGI) has successfully completed its placing, announced on 29 September 2020, issuing 25m new shares at a price per share of SEK12.00 (€1.14/share) raising proceeds of SEK300m (c €29m). The placing price represents a c 10% discount to the two-day volume weighted average price. It increases the number of shares in issue by c 21% to 117.1m. Gross proceeds from the placing will be used to finance acquisitions of new franchises, game publishers and development studios, as well as to invest in organic growth. MGI expects to complete its dual listing on the Nasdaq First North Premier Growth Market in Stockholm on or around 6 October 2020.
Private placing raises €28.5m
The private placing will result in gross proceeds of €28.5m, leading to adjusted net debt at 30 June 2020 of c €45m. The placing helps to reduce gearing to 2.1x adjusted net debt/FY20e consensus EBITDA and FY20e EV/EBITDA to 8.9x, providing additional headroom for further value-accretive acquisitions. The fund-raising reduces any concerns over high levels of short-term debt and extends the free float of MGI’s shares to c 60% (excluding shares subject to lock-up).
Dual listing on Nasdaq First North
In parallel with the private placement, MGI announced that it has applied for a dual listing of its shares on the Nasdaq First North Premier Growth Market in Stockholm, with the shares expected to be listed on 6 October. Sweden is a jurisdiction with a number of games companies, including MGI’s closest peer, Stillfront. The ability to tap into this pool of experienced games investors appears a very sensible strategy to diversify MGI’s shareholder base.
Valuation: Growth story at an attractive price
As was seen in the H120 results, MGI has benefited from lockdown with a surge in demand for its games in Q220, leading the company to raise its revenue guidance and introduce EBITDA guidance. FY20 revenues are now expected to be in the range of €115–125m (consensus of €119.2m) with EBITDA between €20–23m (consensus of €22.1m). This implies 40%+ y-o-y revenue and EBITDA growth (20%+ adjusted EBITDA growth). Looking at an FY20e EV/Sales multiple of 1.9x and an FY20e EV/EBITDA multiple of 10.1x, MGI starts to look very good value, particularly when set against soaring share prices elsewhere in the sector.
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Consensus estimates
Source: MGI accounts (historical figures), Refinitiv consensus (forecasts). Note: *EBITDA adjusted for one-off M&A and financing costs. |
Edison Investment Research provides qualitative research coverage on companies in the Deutsche Börse Scale segment in accordance with section 36 subsection 3 of the General Terms and Conditions of Deutsche Börse AG for the Regulated Unofficial Market (Freiverkehr) on Frankfurter Wertpapierbörse (as of 1 March 2017). Two to three research reports will be produced per year. Research reports do not contain Edison analyst financial forecasts.
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Research: Financials
Numis reported a particularly strong end to its financial year driven principally by capital markets activity. FY20 revenues are set to be nearly 12% ahead of our previous estimate resulting in a 42% increase in our pre-tax profit forecast. Looking ahead, the incidence of capital markets transactions remains uncertain but this prospective result tends to confirm the strength of the franchise and validate the investment the firm has made in resources to underpin client service and growth.