Scientific Games Targets $352m from Social Gaming IPO

Scientific Games, a Las Vegas-based corporation that provides gambling products and services to lottery and gambling organizations across the globe…

…announced the details of an initial public offering (IPO) of its social gaming subsidiary’s stocks.

SciPlay, the social gaming subsidiary of the brand will have a public offering of its Class A common stock. The main aim is to raise up to $352million.

More Details on the Shares

Around 22 million shares of this company will be available via this new offering, while each will be priced at between $14 and $16.

All underwriters will be given a 30-day option to purchase an additional 3.3 million in shares of Class A common stock.

SciPlay plans to trade the shares on the NASDAQ Global Select Market under the ticker symbol SL, as it was announced at the beginning of April.

BofA Merrill Lynch, J.P. Morgan Securities, and Deutsche Bank Securities will act as lead book-running managers for the offering…

…while Goldman Sachs, Morgan Stanley, Macquarie Capital, and RBC Capital Markets will act as book-running managers.

On the other hand, Stifel, Nicolaus & Company and Wedbush Securities will serve as co-managers.

SG Results for Q1

The supplier has also revealed the preliminary results for its social gaming department for the first quarter of this year.

It is expected that the revenue will come somewhere between $117-$119 million for the first three months of 2019…

…which is a nice raise comparing to $97.5 million which was the revenue during Q1 last year.

Scientific Games, which recently mobile devices.

When it comes to the net income, it is expected that it will improve from a loss of $1.1m to somewhere between $13-$15m boost.

Operating expenses for the business segment will most probably remain the same at around $97-$99 million.

Adjusted earnings before interest, tax, depreciation, and amortization are expected to improve from $22.7 million to between $24-$26 million due to higher revenue.

The Results for 2018

Back in February of 2019, SG published the results for 2018 for its social gaming department. During the 12 months of last year, the social gaming revenue grew 14.9% to $415.9 million.

Digital revenue went up to $269.6 million, and by doing so increased a total revenue up 9.1%…

…although there was a decline in gaming revenue which was down 0.7% and came to $1.8 billion.

Scientific announced a loss of $352.4 million for 2018, which was up 45.4% in comparison to the previous year because operating costs grew for a similar amount as the revenue.

Source:

“Scientific Games targets $352m from social gaming IPO”, igamingbusiness.com, April 23, 2019.