As the financial world looks on with anticipation, Games Global, a company known for its dynamic role in the gaming sector, has officially unveiled plans for its Initial Public Offering (IPO), poised to enrich its place in the global market. The firm has announced a price range for the IPO of $16.00 to $19.00 per share, signaling a new chapter in its corporate narrative as it seeks to list on the prestigious New York Stock Exchange (NYSE) under the ticker symbol GGL.
The upcoming IPO is structured to offer six million ordinary shares from Games Global itself, alongside 8.5 million shares presented by current shareholders. Reflecting a strategic decision, Games Global has clarified that proceeds from the shares sold by these existing shareholders will not enter its coffers.
Moreover, the underwriters have been granted an option, lasting 30 days, to acquire up to an additional 2,175,000 ordinary shares from the existing shareholders, if they so choose. The option is crafted to entice and facilitate underwriters, enabling them to purchase additional stakes at the IPO price, deducting underwriting discounts and commissions.
Lending their financial expertise to the operation, JP Morgan, Jefferies, and Macquarie Capital are coordinating as joint lead book-running managers for the IPO. They are not alone in this endeavor, as Barclays and BTIG have stepped up as additional book-running managers, ensuring a robust management team for the financial event.
The news of the IPO comes on the heels of Games Global’s recent activities which included the formal registration for the IPO with the NYSE just weeks prior. As part of the preparation process, the company submitted documents to the Securities and Exchange Commission (SEC), where it defined itself as an “emerging growth company” as well as a “foreign private issuer,” designations that carry certain SEC reporting requirements for this IPO and future filings.
In their strategic planning, Games Global expresses considerable latitude in the employment of the net proceeds from the IPO. It anticipates allocating some portion of the residual net funds into interest-bearing, conservative financial instruments, a move that suggests judicious financial stewardship.
This IPO initiative is among the most recent of significant developments for Games Global which began earlier this year. In a bold move during February, the company finalized its acquisition of the B2B assets of Digital Gaming Corporation (DGC B2B) from Super Group, a purchase that represented an important milestone and one that promises to bolster Games Global’s launch in the United States market.
The intricacies of the negotiation began to take shape last February, with Super Group effectively taking ownership of the business—the rights holder for the Betway brand in the US—just a month before in January 2023, although initial terms of the deal were agreed upon in January 2022. DGC B2B’s footprint can be traced across numerous states including Pennsylvania, Iowa, New Jersey, Arizona, Colorado, Indiana, Virginia, Ohio, and Louisiana. While the financial contours of this transaction remain undisclosed, the strategic significance is apparent.
Games Global further disclosed financial figures reflective of its performance in the year 2023. Demonstrating robust growth, the company reported a year-on-year revenue increase of 82.3%, reaching €306.9 million. After accounting for all operating expenses and recognizing financial income, pre-tax profits soared to €110.6 million. The company settled its tax obligations to the tune of €2.7 million, culminating in a net profit of €107.8 million for the year—an increase of 10.8%.
Additionally, providing transparency into the more recent past, the group shared results for the initial nine months of 2023, revealing revenues of €273.2 million and a profit of €79.1 million.
This IPO marks a significant phase for Games Global, as it continues to expand its influence and assert its financial strength in the global gaming market. Investors and market watchers alike will be paying close attention as the company takes this decisive step onto one of the world’s leading stock exchanges.
