Shares in eSports business Gfinity jumped to 26.75p a share by the end of the first day’s trading.
Gfinity raised £3.5m at 17p a share and it was valued at £13.2m. The valuation has increased to £20.8m. In August, £683,000 was raised at 92.69p a share and a further £1.51m raised at 15.353p a share in November. Sports marketing agency Pitch International, which has been taken on to sell sponsorship and broadcasting rights, subscribed £600,000 for shares.
Nigel Wray’s Euroblue Investments added to its stake in the latest placing and owns 13.7% of Gfinity.
Gfinity organises online and real life eSports tournaments. The cash raised will be used to create an eSports studio in London for events, finance marketing and for the development of the content for gfinity.net. The flotation also provides credibility with games publishers. Gfinity already organises tournaments for eight games including FIFA 15, Halo 2 and Call of Duty: Advanced Warfare.
An event in August at the Copperbox Arena in the Olympic Park attracted 3,830 spectators. The event was broadcast online and there were 8.7 million views. Another arena event is planned for next September.
Short-term, revenues are likely to remain modest but there are opportunities to generate revenues from sponsorship, advertising and broadcasting rights. Pitch is paid a monthly fee of £25,000 plus 20% commission on money raised from advertising, sponsorship and TV revenues.
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