In a significant move that could reshape its future, Games Global has officially revealed its intention to join the New York Stock Exchange (NYSE). The recent filing with the U.S. Securities and Exchange Commission (SEC) on April 16th disclosed that the gaming enterprise plans to list its shares under the ticker symbol GGL, opening a new chapter in its corporate history.
As part of its initial public offering (IPO), a consortium of financial titans including J.P. Morgan, Jeffries, and Macquarie Capital will serve as joint book-running managers. Cooley LLP has the important role of guiding Games Global through the complexities of US federal security regulations as its legal representative.
Although anticipation is high, the specifics of the IPO, such as the pricing range and the number of shares to be released into the market, remain under wraps. Games Global’s statement, made public on April 17th, emphasizes that these critical details are still being finalized.
Categorized by the SEC as both an “emerging growth company” and a “foreign private issuer,” Games Global is subjected to a distinct set of reporting mandates for both the IPO and subsequent regulatory filings. The company has stressed its authority to exercise “broad discretion” in allocating the net proceeds of the IPO, with intentions to foster its financial health by investing in interest-bearing accounts.
Leadership positions at Games Global are firmly held by Walter Bugno as CEO and director, and Timothy Mickley as CFO and director. The financial implications of the IPO filing process, which will be borne entirely by the company, will be elaborated in a future amendment.
The prospectus outlines the anticipation that the net proceeds from the IPO will bolster a multitude of key areas within the company. This includes enhancements to its research and development capabilities, as well as augmenting its sales and marketing efforts.
In its full Form F-1 filing, Games Global has been transparent with its financial performance for the year 2023. An impressive €306.9m in revenue was reported, which indicates a substantial 82.3% growth compared to the previous year. After accounting for sales, general and administrative expenses totaling €59.8m and the cost of revenue at €135.2m, an operating profit of €111.7m was attained. Factoring in financial income and expenses, the company’s pre-tax profit was a healthy €110.6m. Post-tax calculations yielded a net profit of €107.8m, marking a 10.8% year-on-year increase.
An examination of the company’s performance over the first nine months of 2023 showed a revenue generation of €273.2m, resulting in a profit of €79.1m.
Looking at other industry IPOs for reference, Games Global can consider Lottomatica’s April 2023 IPO, which successfully raised €2.67bn. The shares were traded from April 24th until the 27th on the Milan Euronext. This IPO aimed to manage the company’s debt, a portion of which was attributable to the parent company Apollo Global Management, and sought to procure €600m in financing. This included €425m in newly issued stock and €175m in shares sold by existing investor Gamma Topco. Lottomatica expressed satisfaction with the process, stating that the IPO outcomes surpassed initial expectations.
Games Global’s foray into the public domain with its own IPO represents a pivotal strategy in securing its financial future and capitalizing on its industry growth. As the market anticipates the launch of this IPO, Games Global stands at the threshold of an opportunity that can significantly advance its position in the gaming sector.
