Green Man Gaming Delay Plans To Go Public
It’s not uncommon that when a company grows to a certain size that considerations are made into taking it to the stock market. It is, after all, a very quick way to generate significant funds in a business which can be then reinvested to help it grow further or move into new areas. In regards to popular online gaming portal Green Man Gaming, that was exactly their plan.
In a report via GamesIndustry though, the planned IPO has now been delayed due to what they have called ‘horrendous’ equity markets.
Pull The Plug!
The London based online retailer has said: “the equity markets have been horrendous in the past few weeks – with small-cap growth stocks being hit particularly hard.” As such, they have decided for the moment to delay the IPO. Well, at least until the markets appear to be a little more favourable for them.
There May Be For Tangible Reasons
While the decision has cited unfavourable market conditions, there may be more to this than meets the eye. Reports are suggesting that the companies initial value has been downgraded quite significantly since the announcement was first made. Initially valuing the company at around £100m, it is believed that the latest value has them at only £70m.
Now, this doesn’t suggest that the company has lost £30m in value in just one month. It does, however, show that the initial valuation might have been exceptionally optimistic.
The chances are more than likely that Green Man Gaming will, eventually, go public. For the moment though, I’d have to personally get a better idea of the true price. At least before throwing any of my money their way.
What do you think? – Let us know in the comments!
Green Man Gaming is failing for years. They do not generate any profits and they surely fail to deliver any vision for the future to become green on numbers.
While their story of growth might be tempting (mostly for themselves to believe they have a purpose), the market seem to have little interest in them.
Reality hit them hard. No need to find excuses. Red Numbers Gaming is of no value to the public.