video game firm best known for developing racing games is expected to have a market capitalisation of around £280m when it floats on AIM on Friday.

Codemasters is a video game developer and publisher of racing games on console, PC and mobile and boasts a 30-year track record of producing successful titles including the Micro Machines series andONRUSH, the upcoming racing video game for PlayStation 4, XBox One and Windows.

The company rose to fame in the late 1980s thanks to its Dizzy series of computer games.

Codemasters outlined its plans for an initial public offering (IPO) earlier this month and has now revealed it will raise a total of £185m through the sale of existing and new shares.

The selling shareholders will receive £170m and the remaining £15m will be used by the company.

Based on the selling price of 200 pence per share, Codemaster's market cap will be approximately £280m when the company is admitted to the AIM market on 1 June.

Headquartered in Warwickshire, Codemasters employs 500 full-time staff and also operates from bases in Birmingham and Runcorn, Cheshire.

It also has one overseas location in Kuala Lumpur, which is an art production facility.