Indie publisher Devolver Digital is looking to once again become a private company later this year.
In a release to investors, the label announced its intention to delist from UK’s AIM market. Shareholders are set to vote on the matter later this year at Devolver’s AGM, which is scheduled for September 8. If investors vote yes, then Devolver will cease to be a publicly-traded company on September 16.
Devolver initially went public on the AIM in November 2021 with a valuation of £694.6 million ($950 million).
The company’s management now says that the turbulent nature of the video games market since it went public in 2021 has meant that it has “faced the ongoing challenge of delivering growth in line with market expectations despite those difficult sector conditions”.
Devolver’s directors also believe that its current share price “does not reflect the true market value” of the indie label.
Since going public, Devolver’s share price has dropped by 96.27%, bringing the company’s market cap down to £34.64 million ($46.63 million).
Going private is also estimated to save the company around $1.6 million per year.
“Devolver and its board are seeking shareholder approval to delist, believing becoming a private company is in the best interests of Devolver, its employees, its partners, and its Shareholders as a whole,” a spokesperson for the company told GamesIndustry.biz.
“We’ve made an announcement about this.
“The purpose is simple and positive. Being private will allow the Devolver Digital team, especially the finance, legal, and executive team, to singularly focus on the long-term health of the company and less on satisfying the requirements of the public market, which have nothing to do with being a successful game publisher.”
