Games Global Looking to Raise $100 Million in US IPO

Posted on: April 16, 2024, 08:58h. 

Last updated on: April 17, 2024, 10:01h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Games Global, a developer of casino games for the iGaming industry, filed plans on Tuesday for a $100 million US initial public offering (IPO).

Games Global
The Games Global corporate logo. The company filed plans for a $100 million US IPO. (Image: Games Global)

The Isle of Man-based company commenced operations in 2021 and is expected to trade on the New York Stock Exchange (NYSE) under the ticker “GGL.” Games Global’s product offerings include internet-based progressives, slots, table games, and video bingo, among others.

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.

Pricing terms of the deal haven’t been released nor has a date for the offering, but J.P. Morgan, Jefferies, Macquarie Capital, and Barclays are listed as the joint bookrunners on the transaction.

Games Global US IPO Another Blow to London

Games Global’s decision to list in New York represents another blow to the London Stock Exchange (LSE), which is losing business to rival US bourses.

Some of that lost business comes from the gaming industry. In January, FanDuel parent Flutter Entertainment (NYSE: FLUT) listed on the NYSE. Earlier this month, it was revealed the Dublin-based operator wants to shift its primary listing to the NYSE from LSE, and plans to ask shareholders for related approval at its annual meeting in May.

Before Flutter listed on the NYSE, UK-based semiconductor maker Arm Holdings launched an IPO that saw it eschew London in favor of New York. Some market observers believe Brexit is behind the spate of UK-based companies pursuing New York listings.

Others argue that regardless of industry, UK firms can command broader investor audiences, higher valuations, and deeper access to capital and liquidity in New York.

Games Global IPO Could Be Appealing

While legislative efforts to expand the cohort of US states permitting iGaming behind the current number of six failed this year, internet casinos remain a lynchpin in the broader gaming industry’s long-term growth thesis — one centered on the high margins and profitability opportunities afforded by online wagering.

For operators to adequately capitalize, content is essential and that could be a signal of appetite for Games Global services and the IPO. Potentially adding to the appeal of Games Global to investors is impressive revenue growth and the fact that the company is already profitable.

The iGaming content provider posted 2023 sales of $381 million, up from $178.51 million in the prior years. Last year, Games Global notched a profit of $114.49 million, well ahead of its 2022 profit of $103.34 million.