RCS - Winking Studios Ltd - Intention to Float on the AIM Market

Winking StudiosAnnouncement

31/10/2024 09:45

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RNS Number : 3976K  Winking Studios Limited  31 October 2024

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR
PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, CANADA,
AUSTRALIA, SOUTH AFRICA, JAPAN OR ANY OTHER JURISDICTION WHERE SUCH
DISTRIBUTION WOULD BE UNLAWFUL.  FURTHER THIS ANNOUNCEMNT SHALL NOT
CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION TO BUY, SUBSCRIBE FOR
OR OTHERWISE ACQUIRE ORDINARY SHARES OF WINKING STUDIOS LIMITED (THE
"COMPANY") IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD
BE UNLAWFUL.

 

Neither this announcement, nor anything contained herein, nor anything
contained in the Admission Document to be prepared and published by the
Company in accordance with the AIM Rules for Companies published by London
Stock Exchange plc shall form the basis of, or be relied upon in connection
with, any offer or commitment whatsoever in any jurisdiction. Investors should
not purchase any shares referred to in this announcement except solely on the
basis of the information contained in Admission Document in its final form
(together with any supplementary admission document, if relevant), including
the risk factors set out to be set out therein, that may be published by the
Company in due course in connection with the possible admission of the
ordinary shares of the Company to trading on the AIM market of London Stock
Exchange plc. A copy of any Admission Document published by the Company will,
if published, be available for inspection on the Company's website at
https://investor.winkingworks.com, subject to certain access restrictions.

 

 

31 October 2024

 

Winking Studios Limited

("Winking Studios" and together with its subsidiaries, the "Group")

 

Intention to Float

 

Winking Studios Limited (SGX:WKS), the AAA Art Outsourcing and Game
Development business listed on the Catalist board of the Singapore Exchange
Securities Trading Limited, is pleased to announce its intention to seek
admission to trading on the AIM Market of London Stock Exchange
plc ("Admission") in November 2024 (the "Dual Listing") to support, amongst
other efforts, its expansion into Western markets.

 

Founded in 2004 and headquartered in Singapore with nine offices across Asia,
Winking Studios is led by its founder Johnny Jan and is ranked third in Asia
and fourth in the world in terms of global revenue in the global game Art
Outsourcing market*.

 

Working across a range of platforms including console, PC and mobile, Winking
Studios has collaborated with 22 of the world's top 25 game development
companies, including Ubisoft, EA, Activision and Tencent, on high profile
titles such as FIFA, Call of Duty and Assassins Creed.

 

Through its Art Outsourcing Services segment, the Group develops art,
animation and visual effects including characters, environments, props and
effects. Through its Game Development segment, the Group delivers development
services from concept to programming and script writing to post-release
support and maintenance.

 

Strand Hanson Limited is acting as Financial and Nominated Adviser with S.P.
Angel Corporate Finance LLP acting as Broker in relation to the Dual Listing.

 

Highlights

 

 ·             Proven capabilities in art outsourcing and game development with a blue-chip
               customer base: Partnerships with three major game publishing platforms: Sony,
               Microsoft and Nintendo;

 ·             High-growth market: The video gaming sector, in particular the mobile and
               online gaming segments, is expected to continue to demonstrate strong growth;

 ·             Compelling cost advantage of outsourcing: Outsourcing represents an increasing
               proportion of game development budgets, and this trend is expected to continue
               going forward;

 ·             Limited product risk: Given its "work-for-hire" business model, the Group is
               not exposed as principal to the risks associated with ownership and
               development of these games;

 ·             Fragmented market: The global game art outsourcing industry remains
               fragmented, with most service providers being relatively small independent
               studios. The Group completed its first two acquisitions in H1 2024, is
               currently evaluating several targets and has a pipeline of potential
               acquisitions under consideration;

 ·             Strong growth: Significant organic growth over past four years, doubling
               headcount to 800+, increasing revenue to US$29.3m and growing Adjusted EBITDA
               to US$5.3m (FY23);

 ·             Forward earnings visibility from growing follow-on revenues: Focusing on
               successful multi-year, high growth mobile / online titles provides the Group
               with repeat revenue opportunities and enhanced earnings visibility with 18+
               months indicative bookings; and

 ·             Backed by the Acer group**: Supportive shareholder (an aggregate direct and
               indirect shareholding interest of 62.56%) with Acer Gaming's extensive network
               of relationships in the game development and art outsourcing industries as
               well as an in-depth understanding of the global gaming industry. Further, Acer
               intends to participate in the Dual Listing as a cornerstone investor.

 

Placing, Use of Proceeds and Rationale

 

The funds to be raised will supplement the Group's existing available cash
resources in excess of US$30m*** and will be allocated to:

 

 ·             Actively pursuing strategic acquisitions, alliances and joint ventures in Asia
               and Europe to grow the Group's market share and increase operational capacity;

 ·             Establishing a stronger presence and broadening the Group's customer base in
               the North American and European markets, including by (i) increasing the
               Group's marketing and business development efforts; (ii) establishing a
               UK-based regional hub; and (iii) pursuing acquisitions of smaller studios in
               this region;

 ·             Enhancing the Group's current operational capabilities, which includes
               continuous development and improvement of the Group's AI capabilities; and

 ·             In addition to supporting strategic acquisitions and its growth strategy, the
               Dual Listing will provide access to a larger pool of knowledgeable tech
               investors, in order to diversify the Company's shareholder base.

 

Johnny Jan, Founder and Chief Executive Officer of Winking Studios, commented:

"We believe Winking Studios has a significant opportunity to expand its
presence globally, and dual listing on AIM will further support our global
ambitions and position us to accelerate growth. London feels like the obvious
choice, as it gives us a foothold in a market known for its deep understanding
of the global gaming industry and support for ambitious international firms
like Winking Studios. Operating in a fast-growing industry, with a proven
track record of delivery and relationships with the majority of the world's
biggest game developers, we plan to build on our success to date and
capitalise on the fragmented nature of the industry landscape to drive future
growth."

 

* Source: Independent Market Report by China Insights Industry Consultancy
Limited, October 2024

**Refers to Acer Gaming Inc and Acer SoftCapital Inc (both subsidiaries of
Acer Inc)

***Comprising cash and cash equivalents, bond investments and proceeds raised
in Company's placement exercise in July 2024

 

 

Enquiries

 Singapore                                              UK
 Winking Studios Limited                                Via Alma

 Johnny Jan, Founder and Chief Executive Officer

 Oliver Yen, Chief Financial Officer

 8PR Asia (Investor Relations)                          Alma Strategic Communications

 Alex Tan                                               Justine James / David Ison / Emma Thompson

 +65 9451 5252                                          +44 (0)20 3405 0205

  alex.tan@8prasia.com (mailto:alex.tan@8prasia.com)    WKS@almastrategic.com (mailto:WKS@almastrategic.com)

 PrimePartners Corporate Finance Pte. Ltd.              Strand Hanson Limited

 (Financial Adviser in Singapore)                       (Financial and Nominated Adviser)

 Marcus Yong / Pang Xu Xian                             James Harris / James Bellman

 +65 8282 9938 / +65 9692 0195                           +44 (0)20 7409 3494

                                                        SP Angel Corporate Finance LLP (Broker)

                                                        Stuart Gledhill / Charlie Bouverat (Corporate Finance)

                                                        Abigail Wayne / Rob Rees (Corporate Broking)

                                                        +44 (0)20 3470 0470

 

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