Games Global Pulls Plug on IPO, Cites Market Conditions
- 13 May 2024
- Gambling News
A company called Games Global, which creates casino games for the iGaming market, decided against going public with an IPO. Approximately one month after the company filed for its first stock sale, the decision was made on Monday.
The gaming company requested the withdrawal of earlier materials related to the initial public offering (IPO) in a Form F-1 filing with the Securities and Exchange Commission (SEC). The IPO appears to have failed due to difficult market circumstances.
"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 been declared effective, and none of the Company’s securities have been sold pursuant to the Registration Statement. 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),” according to the regulatory document.
Additionally, Games Global requested from the SEC a credit against future usage of the IPO fees the company paid. That might indicate that the company isn't ruling out going public in the future.
Details Removed: Global IPO for Games
It looked like Games Global was on pace to raise up to $275.5 million and sell 14.5 million shares at a price between $16 and $19 earlier this month, valuing the company at up to $2.13 billion.
The Isle of Man-based business started operations in 2021, and it was anticipated that it will list with the ticker "GGL" on the New York Stock Exchange (NYSE). On the deal, J.P. Morgan, Jefferies, Macquarie Capital, and Barclays were identified as joint bookrunners.
“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. Its portfolio spans slot games, table games, video poker, video bingo, game show games, crash games, and live casino games,” noted IPO research firm Renaissance Capital.
Despite being profitable the previous year and recording sales of $381 million in 2023 (up from $178.51 million), Games Global was unable to overcome what it saw as unfavorable market conditions.
Did Games' Global IPO Get Hindered by Sluggish iGaming State Additions?
Games Global declined to comment on this matter, but it's probable that the lack of movement in additional states entering the iGaming arena as of 2024 delayed its IPO. Only six states presently allow internet casinos, despite the fact that they are widely regarded as a key factor in the industry's future growth.
The combination of iGaming's growth trajectory and Games Global's status as a successful firm likely undermines the theory that demand for the IPO was limited.
Renaissance Capital reports that as of now, there have been 54 priced initial public offerings (IPOs) in the US, representing a 28.6% year-over-year rise, and the proceeds raised have amounted to $13.9 billion, a 105.8% year-over-year increase.
