© Reuters.
Today, Winking Studios, a subsidiary of Acer Gaming, commenced its initial public offering (IPO) strategy on the Singapore Exchange (OTC:) Securities Trading Limited’s (SGX-ST) Catalist Board. The gaming company plans to raise $8 million by selling 40 million shares at $0.20 per share. This share sale consists of 27.2 million placement shares and 12.8 million cornerstone shares. After accounting for $2.9 million in expenses, the company forecasts a net yield of $5.1 million.
The placement period, during which investors can purchase these shares, will run from today until Wednesday, November 16th. The capital raised from the IPO will be used for global expansion efforts, including the establishment and enhancement of subsidiaries and offices, as well as infrastructure support improvements.
Winking Studios’ IPO registration marks it as Singapore’s first gaming-related listed company. Acer Gaming will retain a majority stake of 51% post-IPO. The company has also entered into a cornerstone subscription agreement with Jason Chen Chun-Shen for 12.8 million shares.
The net proceeds from the IPO are projected at $5.1 million and will be allocated towards various strategic initiatives. These include group expansion ($1 million), mergers and acquisitions ($2.24 million), artificial intelligence (AI) investment ($1.2 million), and general working capital ($0.64 million).
Winking Studios’ shares are set to commence trading at 9 am on Monday, November 20th.
Operating from Singapore and seven other studios located in Nanjing, Shanghai, and Taipei, Winking Studios has over two decades of experience in providing comprehensive art outsourcing and game development services. The company employs over 700 staff across its three business segments – Art Outsourcing (90% of FY2022 revenue), Game Development (9%), and Global Publishing and Other Services (1%). These segments contributed to a total revenue of $24.5 million for the fiscal year 2022.
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