Games Global looks to raise $100 million in U.S. IPO
Games Global, a developer of casino games in the iGaming industry, on Tuesday filed plans for a $100 million initial public offering (IPO) in the United States.
The Isle of Man-based company, which begins operations in 2021, is expected to list on the New York Stock Exchange (NYSE) under the ticker symbol "GGL." Games Global's products include Internet-based progressive games, slots, table games and video bingo, among others.
The company develops, distributes and markets casino-style gaming content and provides B2B solutions to online gaming operators. "Games Global has worked with 40 internal and partner studios to develop more than 1,300 games over the past 20 years, all of which are now part of its portfolio," said IPO research firm Renaissance Capital.
Pricing terms of the deal have not been announced and no issuance date has been set, but J.P. Morgan, Jefferies, Macquarie Capital and Barclays are listed as joint bookrunners on the deal.
Games Global US IPO another blow to London
Games Global's decision to list in New York is a further blow to the London Stock Exchange (LSE), which is losing business to rival U.S. exchanges.
Some of the lost business came from the gaming industry. In January, FanDuel parent company Flutter Entertainment (NYSE: FLUT) was listed on the New York Stock Exchange. Earlier this month, it was revealed that the Dublin-based operator was looking to move its primary listing venue from the London Stock Exchange to the New York Stock Exchange, with plans to hold a hearing at its annual general meeting in May. Seeking shareholder approval.
Before Flutter listed on the New York Stock Exchange, British semiconductor maker Arm Holdings launched its IPO, eschewing London in favor of New York. Some market watchers believe that Brexit is the catalyst for a large number of British companies seeking initial public offerings in New York.
Others argue that British companies, regardless of industry, can enjoy a wider investor audience, higher valuations and better capital and liquidity in New York.
Game’s Global IPO Could Be Tempting
Although legislative efforts to allow more iGaming in the U.S. than the current six states failed this year, internet casinos remain key to the gaming industry's overall growth theme - one that focuses on the high-margin and profit-focused opportunities offered by online gambling.
For operators to make the most of their capital, content is critical, which could be a signal of demand for Games Global's services and IPO. Impressive revenue growth and the fact that the company is already profitable may increase Games Global's appeal to investors.
The iGaming content provider reported revenue of $381 million in 2023, up from $178.51 million in previous years. Last year, Games Global's profits were $114.49 million, up from $103.34 million in 2022.
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Source: www.casino.org
