Shares in UK gaming company Sumo Group soared last week to top the Saxo Markets weekly winners list for the London Stock Exchange. Here’s why the company’s shares were on a tear and a look at other companies that garnered notable gains last week.
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What is Sumo Group?
Sumo Group is a UK-based company that provides development services to video games and entertainment industries. The company, which was founded in 2003, has created video game content for some of the largest global video games publishers and developers in the world, including Microsoft and Sony.
Sumo has been trading on London’s AIM market since 2017.
What is up with Sumo Group shares?
Sumo Group’s shares were up 39.24% last week, according to Saxo Markets. After closing at 358p on Friday of the previous week, Sumo shares soared last week topping 518p at one point before closing off the week at 495p.
At the time of writing, Sumo Group shares are trading at around 492p.
Why did the price of Sumo Group shares rise?
The incredible rise of Sumo Group’s share price follows news that an agreement has been reached with China’s Tescent, the world’s largest video game publisher, to buy the company at a valuation of more than £919 million.
Under this agreement, Sumo shareholders will get 513p per share in cash, which translates to a 43% premium on the previous week’s closing price of 358p.
In a statement, Sumo’s non-executive chairman said, “The business will benefit from Tencent’s broad video gaming ecosystem, proven industry expertise and its strategic resources, which will help secure and further the aspirations and long-term success of Sumo.”
Clearly, investors also have confidence in the new partnership, as evidenced by the big rise in the value of Sumo shares last week.
The video game industry as a whole has been thriving in the wake of the pandemic, which has resulted in increased gaming activity during lockdowns.
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What other companies’ shares performed well?
Apart from Sumo, the LSE saw a few other notable gainers last week. For the fourth week in a row, GCP Student Living’s share price was on the weekly winners list.
Here is the complete list of the top ten gainers on the LSE last week:
- Sumo Group – 39.24%
- Ultra Electronics Holdings – 39.15%
- Frontier Developments – 17.92%
- 3i Group Plc – 11.15%
- GCP Student Living – 10.68%
- Cinemaworld Group – 10.61%
- Future Plc – 10.33%
- Biffa Plc – 10.28%
- Keywords Studios – 10.14%
- Blue Prism Group – 9.32%
Can I buy shares in Sumo Group?
As it is a publicly traded company, shares in Sumo Group can be bought using a standard share dealing account. If you don’t have one already, check out our comparison of some of the top providers of share dealing accounts in the UK.
You can also invest through a stocks and shares ISA, like the Saxo Markets Stocks and Shares ISA. This is essentially a tax wrapper that you can use to shield your investments from tax.
Just keep in mind that the value of your investments can fall as well as rise. You could get back less than you invest.
Before you invest, make sure to do your own research. If you are unsure of the suitability of an investment, seek professional advice.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
