Dream Link Entertainment Inc. (DLE), a portfolio company of Fenox has gone public on March 26, 2014 on Tokyo Stock Exchange’s Mothers market. Although the offer price was set at 1200 yen, the price doubled to 2412 yen by the opening day afternoon beating all forecasts leading to the IPO. Underwritten by Nomura, the opening stock performance is great news for the shareholders of DLE. The icing on the cake for Fenox and other major shareholders was the opening price, which at more than 1.5 times the offer price has released the major shareholders from a usual lockup period of 90 days.
The company is the #1 Flash animation studio in Asia, best known for its flagship animation “Secret Society Eagle Talon.” The series is broadcasted nationwide by NHK and widely accepted across generation segments. The global expansion of DLE, having already penetrated markets such as Taiwan, China, and Thailand, will be buoyed by the successful IPO.
Majority of DLE’s revenue is generated through licensing fees of animated characters in addition to the sale of related goods. By June 2014, forecasts estimate a 73% on-year rise in sales to 1.6 billion yen and a fivefold jump in net profit to 328 million yen. This exponential growth is attributed to DLE’s low-cost flash animation production methods.
The CEO of DLE, Ryuta Shiiki started his career at Sony, where his 10-year tenure includes global businesses at Sony International Singapore and the position of General Director at Sony Vietnam in Hanoi. Subsequently, he developed a deep understanding of the content industry as the Head Officer of Overseas Licenses at Sony Pictures Visual Works (currently Aniplex). Since founding the company in 2001, Shiiki secured partnerships with global content leaders, including Hasbro and Warner Brothers Animation. Producers Guild of America recognized such efforts, and inducted Shiiki as its first member from the Anime industry in Japan.
Further details of the public offering can be accessed here.