Money is the nature of the Game

Retailer's flotation sparks off investor interest from the City for the leisure sector. Steven Palmer reports.

High street leisure retailer Game has exceeded City expectations withhe leisure sector. Steven Palmer reports. a flotation valuation of #148 million, confirming the games industry as a serious money spinning business.

The valuation at the upper limit of estimates provides Game with #10 million previously earmarked for its store opening programme and to reinforce its capital structure (PC Dealer, 29 April). Shares in Game will begin trading on 3 June, with shares priced at 200p, establishing it as a public limited company.

Neil Taylor, chairman of Game, was aware of the additional pressures on the company.

'The City doesn't like to see us sitting on piles of cash, but we now have the flexibility to pursue our store opening policy. We were aiming at opening 20 stores this year but that may accelerate now we are a Plc.

It opens doors to the high street sites we want - sites closed to us as a private company,' he said.

Game has already isolated 150 possible store locations and will target 120 of these over the next three years.

'We have a successful formula, City support and have just opened our 66th store. Europe is a different culture and we will expand there too, but on a modest basis. The prime concern is the UK base.'

Taylor added that although Game was a high street operation, the retailer would not discount the option of opening out-of-town stores in the future.

The float valued chairman and co-founder Taylor and his family at more than #70 million.

The Taylor family holds a 48.5 per cent stake in the retailer but will sell about half of its stake, retaining a 22.6 per cent share worth #33.5 million.