Posted on: March 15, 2023, 04:18h.
Final up to date on: March 15, 2023, 04:18h.
Slot machine producer Gentle & Marvel (NASDAQ: LNW) informed buyers immediately it’s contemplating a secondary itemizing of its fairness on the on the Australian Securities Alternate (ASX).
That might be along with its present, main itemizing on the Nasdaq. Australia is certainly one of Gentle & Marvel’s largest markets exterior the US and a Sydney itemizing may give the gaming firm enhanced publicity to Australia’s institutional buyers.
The ASX is a premium market with an extended observe file as a platform for world gaming corporations and a deep and liquid pool of refined buyers and market members who’ve a robust understanding of the gaming enterprise,” mentioned L&W Government Chairman Jamie Odell in an announcement.
The Las Vegas-based firm mentioned it can replace buyers when the analysis course of is finalized although it didn’t reveal a associated timeline. It added that there are not any ensures {that a} secondary itemizing on the ASX will materialize.
Gentle & Marvel Deep Australia Ties
This isn’t the primary time L&W mulled an ASX itemizing. Practically two years in the past — then working as Scientific Video games — the corporate reportedly engaged Australian funding financial institution Jarden Australia to judge a possible secondary itemizing in that nation.
A number of months later, the corporate mentioned it was contemplating an Australian preliminary public providing (IPO) for its SG Lottery unit. That transaction didn’t materialize as a result of the dad or mum firm ultimately offered the lottery enterprise to personal fairness agency Brookfield, permitting it to considerably scale back debt, which was the first motivations for contemplating the ASX itemizing.
L&W has different Aussie ties. Odell is a well-respected Aussie gaming government and beforehand ran Aristocrat — the world’s largest slot machine maker — for a decade. He’s additionally part of Caledonia Investments, which beforehand bought a $1 billion stake in Scientific Video games from financier Ron Perelman.
“We imagine they (Australian buyers) will admire the worth and long-term potential of L&W’s broad worldwide enterprise and technique. We sit up for participating with the market and our present shareholders on a possible secondary itemizing,” added Odell in immediately’s assertion.
Gentle & Marvel May Be Fascinating to Aussie Buyers
Primarily based on immediately’s closing market capitalization of $5.13 billion, Gentle & Marvel is assessed as a mid-cap inventory, which means it’s excluded from some well-liked, massive cap-heavy home fairness gauges. However based mostly on that market worth, it’d be the 90th-largest firm buying and selling on the ASX.
One more reason L&W could possibly be evaluating the ASX secondary is as a result of Australian buyers, each skilled and retail, are usually extra enthusiastic about gaming equities than their US counterparts. For instance, L&W rival Aristocrat Leisure Ltd. is the 18th-largest ASX-listed agency. A number of different gaming operators rank among the many 200 greatest corporations buying and selling in Sydney.
Moreover, Australian market members have an affinity for US shares. As only one instance of that development, the most important alternate traded fund (ETF) within the nation is linked to the S&P 500, not a benchmark of Aussie equities.
