Global Games Calls Off IPO Due to Market Circumstances
Game Global, a creator of casino games for the online gambling industry, has decided to cancel their planned initial public offering (IPO). This decision comes around a month after they initially filed for the stock sale.
In a Form F-1 document submitted to the Securities and Exchange Commission (SEC), the gaming company requested to withdraw all materials previously made for the IPO. It seems that the current market conditions were the reasons behind the cancellation of the IPO.
The company stated, "Due to current market conditions, the Company has determined not to pursue, at this time, the initial public offering of the Company’s ordinary shares to which the Registration Statement relates." The Registration Statement has not yet been finalized, and no shares have been sold using it. The company further mentioned, "Based on the foregoing, the Company submits that the withdrawal of the Registration Statement is consistent with the public interest and the protection of investors, as contemplated by Rule 477(a)," as per the regulatory document.
Games Global has also asked the SEC to hold onto the fees it paid for the IPO so that they can use them in the future. This might indicate that the company isn't completely ruling out the possibility of going public at a later date.
Details of the Abandoned Games Global IPO
In early April, it seemed that Games Global was well on its way to selling 14.5 million shares at $16 to $19, equating to a valuation of up to $2.13 billion and potentially raising $275.5 million.
This company, based in the Isle of Man, began operations in 2021 and was planned to be listed on the New York Stock Exchange (NYSE) under the ticker "GGL." J.P. Morgan, Jefferies, Macquarie Capital, and Barclays were set to be the joint bookrunners on the transaction.
As per IPO research firm Renaissance Capital, Games Global "develops, distributes, and markets casino-style gaming content, and provides B2B solutions to online gaming operators. Games Global works with 40 in-house and partnered studios, which have created more than 1,300 games over the past 20 years, all of which are now part of its portfolio." Their portfolio includes slot games, table games, video poker, video bingo, game show games, crash games, and live casino games.
Last year, Games Global had sales of $381 million, a significant increase from the $178.51 million they had in 2022. The company was also profitable, but these strong numbers weren't enough to make up for the company's perception of weak market conditions.
Was Games Global's IPO Affected by a Lack of New States in the iGaming Industry?
Games Global did not comment on this, but it's plausible that their IPO may have been hindered by the fact that no new states have joined the online gambling sector this year. While casinos online are seen as a significant driver of future growth in the industry, only six states currently permit that type of betting.
It is possible that interest in the IPO was low, but the combination of the expanding online gambling market and Games Global's status as a profitable company likely disproves that theory.
So far in 2024, there have been 54 IPOs priced in the US, a 28.6% increase from the previous year. The total money raised by these IPOs amounts to $13.9 billion, a year-over-year increase of 105.8%, according to Renaissance Capital.
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Source: www.casino.org
