The placement positions iCandy to scale up as a global leader in games development, for one of the world’s fastest growing markets.

Listed games developer iCandy Interactive (ASX:ICI) was the talk of markets in Friday trade, following up a major acquisition announcement with an monster $40m capital raise.

The capital raise will be carried out through two tranches at 11.5c, in a share placement that was heavily oversubscribed by sophisticated investors.

It will also see “several high-quality institutional investors — including some of Australia’s top long-only funds — join the company’s share register”, iCandy said.


Growth ambitions

Shares in iCandy resumed trading this afternoon and promptly ripped higher by around 18%, to 16c.

The money raised will be used in part to fund iCandy’s strategic acquisition of Lemon Sky Studios – a tier-one developer of AAA games that has longstanding partnerships with a number of the world’s biggest industry players.

The capital raise was backed by a $10m cornerstone investment from existing iCandy shareholder Animoca Brands.

Previously listed on the ASX, Animoca has since established itself as a global leader in blockchain gaming, NFT (non-fungible tokens) and the ‘metaverse’.

Increased online interaction through the metaverse is viewed as the next frontier in global markets by some of the world’s biggest tech companies including Facebook (which recently changed its name to Meta).

Animoca has been busy in private capital markets this year, confirming a follow-up $65m raise in October which valued the company at US$2.2bn.

The $40m share placement and Lemon Sky acquisition now positions iCandy as a leading games development business with a global footprint.

One of the world’s largest and most lucrative markets, the global gaming and esports market is expected to growth to north of US$350bn by 2025, iCandy said.

This article was developed in collaboration with iCandy Interactive, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.