Visual effects firm DNEG confirms plans for £150m London listing
Oscar award-winning visual effects firm DNEG has confirmed plans to list on the London Stock Exchange, saying it will seek to raise £150m from the float.
The London-headquartered company said it intends to sell at least 25 per cent of new and existing shares in a bid to fast track its growth plans.
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DNEG, which specialises in animation and visual effects, has worked on films including Interstellar, Harry Potter and Avengers: Endgame, as well as hit TV show Chernobyl.
Despite the string of Hollywood hits, the company remains relatively unknown, and is hoping a float will boost its public profile. DNEG also said the listing would increase its ability to recruit and retain key talent.
The company currently has a workforce of 6,900, and also has operations in the US, Canada and India.
Its customers include Hollywood’s largest film studios – such as 20th Century Fox, MGM, Universal and Warner Bros – as well as Netflix, Amazon and Sky.
DNEG’s management has already met investors in early-stage meetings, known as “pilot fishing”, and received enough interest to proceed with the listing. The company said it expects to start trading on the stock exchange in November.
DNEG posted revenue of $309m (£244m) in the year to the end of March, while profit hit $20.7m.
In a statement issued last week, chief executive Namit Malhotra said it was a “golden age” for film and TV producers, as streaming services such as Netflix and Amazon Prime drive demand for original content.
Apple and Disney will both launch new streaming services next month in a welcome move for production companies.
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“A London listing will continue our development as one of the world’s leading partners for the film, television and entertainment industries,” Malhotra said.
Deutsche Bank, JP Morgan Cazenove, Numis, Santander and BNP Paribas will act as joint bookrunners on the listing.
Main image credit: Getty