Coffee Stain debuts with $615 million valuation after Embracer spin-off

Dec ‌11 (Reuters) - Video game developer and publisher Coffee Stain Group ‍started trading ‌on the Nasdaq First North exchange on Thursday after its ⁠separation from Swedish gaming ‌group Embracer.

The spin-off of Embracer's independent game studios into Coffee Stain is part of a sweeping restructuring plan, which also included listing ⁠board game maker Asmodee in February. The move brings titles such as Goat ​Simulator, Valheim and Deep Rock Galactic under ‌Coffee Stain's umbrella.

Shares of the ⁠newly-listed group opened at 26.62 Swedish crowns, giving it a market valuation of around 5.7 billion crowns, or $615 million, ​based on its around 214.2 million listed shares. However, they were trading close to 10% lower at 24 crowns by 0910 GMT.

Embracer shares have been trading without Coffee Stain ​rights ‍since Monday, when the ​separation knocked off some 30% of its market value. They were down around 2% at 59.6 crowns per share in early trading on Thursday.

That translates to a market capitalisation of around 13 billion crowns, as opposed to 18.7 billion crowns ⁠before Coffee Stain was carved out, based on LSEG data.

Embracer said in November it ​would leave Coffee Stain with no debt and a pro-forma net cash position of 500 million crowns as of September 30, which should allow it to ‌continue investing in its game portfolio and potential acquisitions.

($1 = 9.2719 Swedish crowns)

(Reporting by Vera Dvorakova in Gdansk; Editing by Milla Nissi-Prussak)