Frontier Developments raised GBP4 million by selling its shares on the Alternative Investment Market (AIM), a submarket of the London Stock Exchange. The flotation placed the company's value at GBP39.4 million.

The proceeds from the stock issuance will be used to develop its Cobra software. David Braben, the company's founder, said, "I am delighted by the level of support Frontier has received and by the calibre of our investors, whose participation in our IPO is a strong endorsement of the growth potential we have identified. Frontier's admission to AIM, along with the funding we secured earlier this year, will support our efforts to further enhance the capabilities of our technology platform Cobra as the expansion of games into the mainstream entertainment industry and advent of digital distribution provide significant opportunity to generate further growth."

Braben retained a 56.4% stake in the video game company that was based in Cambridge and has a studio in Halifax, Canada.