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DNEG could be a prize for investors as the visual effects firm plans an IPO: Sky News
Posted on Monday, 22 July 2019 13:34
DNEG, the UK-based special effects company behind films such as Interstellar, Black Panther and Avengers: Infinity War, is planning a potential initial public offering (IPO) that could bring in tens of millions of pounds in proceeds, Sky News reported.
Citing sources, the broadcaster observed that the multi-Oscar-winning group has hired bankers, said to include JPMorgan, to work on the possible flotation in London at some point this year.
While the exact terms and timing of the listing could not be learned at this stage, one insider told Sky News that DNEG could be valued at around GBP 300.00 million in the IPO.
The stock market debut would depend on market conditions, which are likely to be affected by Britain’s departure from the European Union, with the latest deadline set for 31st October 2019.
However, that being said, DNEG has a strong catalogue of films and television projects that are likely to shield the company from a market downfall, the broadcaster noted.
Founded as Double Negative in 1998, the business has worked on a rage of visual effects for different projects, with one of its latest being the Sky and HBO drama Chernobyl.
The company has won five Academy Awards and five additional British Academy of Film and Television Arts (BAFTA) prizes for its work on First Man, Bladerunner: 2049, Interstellar and Ex Machina.
DNEG operates studios in London, Vancouver, Mumbai, Los Angeles and Hyderabad, among other locations.
According to accounts filed with Companies House, the group recorded revenue of GBP 108.17 million in the year to 31st March 2018, up 22.7 per cent from GBP 88.14 million in the previous 12 months.
Profit before tax totalled GBP 13.62 million in fiscal 2018, compared to a loss of GBP 293,000 in FY 2017.
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