Winking Studios Limited (“Winking Studios” or “the Company”), a prominent game art outsourcing and game development company in Asia, announced on 9 July 2024 that it has successfully completed the placement of 108.0 million new ordinary shares at S$0.25 each, raising net proceeds of S$26.5 million.
The placement attracted significant interest from Winking Studios’ existing indirect controlling shareholder, Acer Incorporated, through its subsidiaries Acer Gaming Inc. and Acer SoftCapital Incorporated, as well as from the Company’s management team and regional investors from Singapore, Malaysia, and Taiwan.
Executive Chairman and Chief Executive Officer Mr Johnny Jan expressed his gratitude for the continued support from regional investors and emphasised the Company’s commitment to growth and said, “The funds raised through this placement will primarily support Winking Studios' strategic corporate initiatives, acquisitions, and enhancements of operational capabilities. This marks a significant milestone for the Company, demonstrating robust confidence from the investment community.”
The net proceeds of approximately S$26.5 million will be allocated towards strategic acquisitions, alliances, joint ventures, secondary or dual listings, and expanding the Company's market presence globally. Additionally, Winking Studios plans to enhance its operational capabilities, including developing artificial intelligence (“AI”) tools and improving office infrastructure to maintain high-quality services and art assets.
With the successful completion of this placement, Winking Studios is well-positioned to implement its growth strategies and unlock new value propositions for all stakeholders. The Company remains dedicated to expanding its market share, broadening its customer base, and maintaining its reputation for delivering high-quality digital art assets and game development services.
Winking Studios’ continued expansion and innovation efforts underscore its potential for sustained growth and success in the highly competitive game art outsourcing and development industry.
PrimePartners Corporate Finance Pte. Ltd. (“PPCF”) is the continuing sponsor of the Company and acted as placement agent for this capital raising. PPCF was the full sponsor and placement agent for the listing of Winking Studios in November 2023, through an IPO on the Catalist board of the Singapore Exchange that raised net proceeds of approximately S$5.1 million.
Strategic Acquisitions since IPO in November 2023
Winking Studios has completed two strategic acquisitions in 2024. These include the acquisition of On Point Creative Co., Ltd., a Taiwan-based design studio, and the business and certain assets of Pixelline Production Sdn. Bhd., a Malaysia-based art and animation outsourcing services provider. These acquisitions have expanded Winking Studios’ network to nine studios strategically located across Asia.
Positive Financial Performance
For the financial year ended 31 December 2023 (“FY2023”), Winking Studios' revenue increased 19.5% to US$29.3 million with gross profit of US$9.3 million (gross profit margin of 31.9%). The Group's EBITDA increased 44.4% to US$3.3 million, while Adjusted EBITDA increased 109.2% to US$5.3 million. For FY2023, the Company has paid out a special cash dividend of 0.5 Singapore cents per share.
Winking Studios’ commitment to investing in AI development and office infrastructure ensures the continued excellence of their services and artistic assets
Proposed Dual Listing on the AIM market of the London Stock Exchange (“Proposed AIM Listing”)
In April 2024, Winking Studios announced a Proposed AIM Listing that may provide an additional quoted platform for the securities of the Company to be traded via an established stock exchange in Europe.
The Proposed AIM Listing may also enable the Company to gain access to a diversified base of shareholders and investors comprising new institutional and private investors in the United Kingdom ("UK") and Europe, which in turn may allow the Company greater flexibility to access the capital markets in these regions to conduct fund raising and other strategic investment exercises (such as potential merger and acquisition opportunities should they arise from time to time).
With a wider and more diversified shareholder base, the Company also hopes to improve the trading liquidity of its securities on its trading platforms. The Company further believes that the Proposed AIM Listing presents an excellent opportunity to increase the market visibility and profile of the Group globally and to enhance the Company's corporate branding and reputation, in particular, with existing and new clients in the regional and global gaming industries in which the Group operates.
About the Company: Winking Studios is one of Asia’s largest game art outsourcing studios and an established game development company. With over 26 years of experience, the Group’s three business segments include the Art Outsourcing Segment, which is its largest segment and involves the creation and development of digital art assets including 2D concept art, 3D modelling, 2D animation, 3D animation and visual effects, such as environment design and game character design.
Its two other complementary business segments are the Game Development Segment, where the Group provides game development services, including programming, development, design and script writing of games; and the Global Publishing and Other Services Segment, which involves the release of games products produced by the Group as well as third party game developers on global game platforms, including PlayStation, Switch and Steam, and the sale of the Group’s in-house developed video games and peripheral gaming products.
Headquartered in Singapore, the Group has nine studios across Nanjing, Shanghai, Suzhou, Taipei and Kuala Lumpur with over 800 highly skilled employees serving a global customer base. It is majority owned by Acer Gaming Inc., a subsidiary of Acer Incorporated, which has an extensive network of relationships in the game development and art outsourcing industries, as well as an in-depth understanding of the game industry in Asia.
For more information: https://investor.winkingworks.com/
*Photo credits courtesy of Winking Studio.