Games Global Looking to Raise $100 Million in US IPO
Developer of casino games for the internet gaming market, Games Global, filed plans for a $100 million US initial public offering (IPO) on Tuesday.
The Isle of Man-based business started operations in 2021, and it plans to list and trade under the ticker "GGL" on the New York Stock Exchange (NYSE). Internet-based progressives, slots, table games, and video bingo are just a few of the products that Games Global offers.
"The company 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 developed more than 1,300 games over the past 20 years, all of which are now part of its portfolio,” according to Renaissance Capital, an IPO research firm.
Although the offering date and pricing details of the deal have not been disclosed, J.P. Morgan, Jefferies, Macquarie Capital, and Barclays are identified as the transaction's joint bookrunners.
Games Global US IPO Deals London Another Setback
Another setback for the London Stock Exchange (LSE), which is losing trade to competing US exchanges, is Games Global's decision to list in New York.
A portion of that lost revenue is attributable to the casino sector. FanDuel's parent company, Flutter Entertainment (NYSE: FLUT), went public on the NYSE in January. The Dublin-based operator intends to request shareholder approval at its annual meeting in May to move its primary listing from the LSE to the NYSE, as was disclosed earlier this month.
Arm Holdings, a UK-based semiconductor manufacturer, chose New York over London for its initial public offering (IPO) prior to Flutter's NYSE listing. Some market watchers speculate that the wave of UK-based businesses seeking New York listings is a result of Brexit.
Some contend that UK companies may attract greater investor attention, higher valuations, and deeper access to cash and liquidity in New York, irrespective of industry.
Global IPO for Games May Be Alluring
The high margins and profitability opportunities offered by online wagering remain a key component of the gaming industry's long-term growth thesis, even though legislative attempts to increase the number of US states that permit iGaming beyond the current six states failed this year.
Content is necessary for operators to properly capitalize, and this may indicate interest in Games Global services and the IPO. Games Global's remarkable sales growth and profitability might make the company even more appealing to investors.
The provider of iGaming content reported $381 million in sales in 2023, an increase from $178.51 million in the previous year. Games Global made $114.49 million last year, far more than its $103.34 million profit in 2022.
