Five years ago, indie publisher Devolver Digital listed on the Alternative Investment Market (AIM) of the London Stock Exchange, becoming a public company. Now, they find this status unappealing.
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On August 6, Devolver Digital contacted its investors, proposing they vote to delist. If the overwhelming majority supports the idea, the company will become private again by September 16.
Devolver Digital explained that its shares are currently priced too low and “do not reflect the true market value” of the publisher — partly due to the crisis in the gaming industry. The company considers continuing trading under these conditions too risky.
Devolver Digital anticipates that delisting will improve its financial standing and save it up to $1.6 million in annual expenses.
“The purpose is simple and positive. Being private will allow the Devolver Digital team, especially the finance, legal, and executive team, to singularly focus on the long-term health of the company and less on satisfying the requirements of the public market, which have nothing to do with being a successful game publisher,” a Devolver Digital representative stated in a comment to GamesIndustry.
Over the recent years, Devolver Digital’s value has indeed dropped significantly. At the time of its IPO in November 2021, the company’s market value was estimated at £694.6 million ($950 million), but today that amount has decreased 20-fold to £34.64 million ($46.63 million).
Incidentally, following the announcement of the delisting plans, Devolver Digital’s stock price plummeted by 59.38% to 6.5 pence (8.7 cents) per share.