World Chess PLC has set up its pieces on the London Stock Exchange’s main board after raising just over £3mln in its initial public offer, which was less than half of what it had hoped for.
At a price of 6.25p per share, the IPO gives the chess tournament organiser and online gaming platform operator a market cap of £41.7mln before any of its pawns are moved.
The company, which was advised by Novum Securities on the float and offered some shares to retail investors via the PrimaryBid platform, said it would use the new funds to support its growth strategy, including the further development of its online playing platform and marketing initiatives.
Founded in 2012, World Chess is a partner of the International Chess Federation (FIDE) and has an exclusive position to offer FIDE-recognised online ratings and titles to players, as well as owning the contract to hold and broadcast major FIDE events.
Chief executive and co-founder Ilya Merenzon, a Russian-born, Berlin-based entrepreneur, said: “The completion of our IPO comes at an exciting time for chess.
“The number of players and spectators of the sport is growing and with this new commercial opportunities are opening up. Using our public profile and position as a public company, we are well-placed to capitalise on these opportunities and grow World Chess.”
He has attributed the Netflix series The Queen’s Gambit and the public prominence of players such as Magnus Carlsen for the explosion in the popularity of chess online during the pandemic, with hours of streaming on the Twitch platform spiking during lockdowns and still remaining in 2023 well above pre-pandemic levels.
World Chess reported 28% revenue growth in 2021 to €3.22mln, with a split of 44% generated through its online playing platform, 28% through events and 28% through its chess clubs and merchandise.
Unaudited revenue for the half-year 2022 grew 120% to €1.98mln it said.
