Why the iCandy (ASX: ICI) share price is on a wild ride
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The iCandy Interactive Ltd (ASX: ICI) share price closed at 5.4 cents today after soaring 14% in early morning trade. This comes after the company emerges from another trading halt following its second successful capital raising in only 4 days.
The small-cap video game developer’s share price has been rocketing higher since 10 September. It surged again last week after announcing a $1.25 million capital raising (before costs) of 62,500,000 new fully paid ordinary shares.
Investor interest has seen iCandy Interactive’s share price leap up 190% since 10 September.
Year-to-date the share price is up 83%. By comparison the All Ordinaries Index (ASX: XAO) is down 12%.
What does iCandy Interactive do?
iCandy Interactive develops and publishes mobile games and digital entertainment for audiences across the world. The company’s diverse portfolio of award winning mobile games is played by more than 350 million people. It aims to bring together the best game producers across the Asia Pacific region to, you guessed it, make great games.
iCandy shares first began trading on the ASX in February 2016. The company has a market cap of $25 million.
What’s with a second capital raising?
Less than a week ago, on 15 September, iCandy announced it had raised $1.25 million at 2 cents per share. The placement was heavily over-subscribed, with more than $5 million bid for shares from a variety of funds, sophisticated investors and existing shareholders.
With that level of investor interest, the company launched a second capital raising, with the results announced today.
The company said it had completed the additional capital raising of $1.2 million at 4.5 cents per share. That’s 125% higher than the 2 cents per share of its capital raising last week.
Shares were placed to Acorn Managed Investments, led by Joseph Sedmak.
Sedmak is focused on digital marketing strategies and initiatives. The company will work with him to boost its digital marketing capabilities, particularly in North America, the largest market for its games. iCandy said it would also use the new funds to accelerate the roll-out of its new games.
With e-sports one of the few ‘sports’ that’s managed to escape a major blow from the coronavirus pandemic, the iCandy share price is one to watch.
