Devolver Digital has proposed withdrawing from the Alternative Investment Market (AIM) on the London Stock Exchange, going private again five years after its initial IPO. According to its announcement, it would offer up to $5 million in return of capital to qualifying shareholders, and, pending approval, would leave the AIM by September 16.
In its notice to shareholders, Devolver says the games industry has “undergone a period of significant disruption and volatility” and has faced challenges in both making games and delivering the growth that the market expects. According to the note, Devolver’s board thinks “the Cancellation is in the best interests of the Company and its Shareholders as a whole,” estimating that the company will save $1.6 million annually by leaving the AIM.
The notice goes on to say that Devolver’s operating model as an indie publisher is dependent on individual titles. “Development timelines can be unpredictable, and, as a result, financial performance can vary significantly between reporting periods and may not follow a linear progression. The Board feel this irregularity has not been readily compatible with the requirements of the market for semi-annual reporting with an emphasis on predictable, sequential growth.”
The “valuation disconnect” between the company’s share price and its “true market value” is a recurring theme in the notice, with the board of directors noting that, “the stock market has not rewarded the Company for its successive and substantive operational improvements over the last six consecutive halves through to the end of 2025.”
Calling the last five years “a period of significant disruption and volatility” would not be an exaggeration, nor is Devolver the only company planning to leave the public market. Electronic Arts this week closed its acquisition by a consortium for $55 billion. While several of Devolver’s recent titles have been sales successes — such as Cult of the Lamb, Ball X Pit and Quarantine Zone: The Last Check — the publisher’s volume of titles might drown out stock market-pleasing growth.
In a comment to Gamesindustry.biz, a Devolver spokeperson said, “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.”