Games Global aims to raise $275m from IPO valuing firm at $2bn
Supplier plots share price to launch between $16 and $19, with capital to be used across product development and potential M&A
Games Global has confirmed its initial public offering (IPO) price is expected to be between $16 and $19 per share ahead of its listing on the New York Stock Exchange (NYSE) later this year.
The supplier confirmed its intention to go public last month after submitting a prospectus with the SEC, and has followed that up with a Form F-1 detailing the finer points of its plan.
The original prospectus did not reveal how much the group expected to raise through the IPO, or what price the stock would initially be set at.
Games Global will offer 14.5 million ordinary shares as part of the IPO, made up of six million ordinary shares offered by Games Global and 8.5 million ordinary shares to be sold by Games Global’s existing shareholder, Zinnia Limited.
Games Global confirmed underwriters will have a 30-day window to purchase up to an additional 2,175,000 shares from Zinnia at the IPO price.
If the share price is set at $19, Games Global could raise as much as $275.5m through the IPO, putting its market value at around $2.1bn, according to Reuters.
As detailed in the SEC filing, Games Global bosses expect the net proceeds to the business following the IPO to be around $92.6m, based on a share price of $17.50.
The supplier said that each $1 variation in the share price would see net proceeds either decrease or increase by $5.6m, while an increase of one million ordinary shares would result in net proceeds improving by $16.4m.
Games Global stated, as of the time of filing with the SEC, that it could not “specify with certainty all of the particular uses for the net proceeds to us from this offering”.
However, the firm added it was currently intending to use the capital for product development, compliance costs, expansion into new markets and M&A.
The business stressed that it does not have “agreements or commitments for any material acquisitions or investments at this time”.
JP Morgan, Jefferies and Macquarie Capital are acting as joint lead bookrunning managers for the IPO.
Barclays and BTIG have also been added as bookrunning managers for the IPO.
Games Global’s IPO would mark a return for gambling firms going public following the SPAC-induced drive in the early 2020s.