Games Global scraps IPO plan just hours before NYSE listing

Article by : Charles Perrin May 15, 2024

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Games Global made the dramatic decision to scrap its IPO just hours before it was supposed to go public on the New York Stock Exchange.

It was widely anticipated today that the venerated online casino supplier that showcases its portfolio of games on platforms such as DraftKings and FanDuel, was going to be announced on the NYSE at the ringing of the opening bell. But ultimately, it pulled the plug on its application.

While the timing of the abdication of its proposed IPO has not been confirmed, it is thought the decision to file a Withdrawal of Registration statement with the Securities and Exchange Commission (SEC) was supposedly down to trying market conditions.

Games Global, which had been poised to trade under the ticker “GGL” baffled analysts with its abrupt decision.

Curiously, Games Global requested the SEC to credit for future use the fees outlaid for the IPO, indicating that such plans have been put on ice, and it could revisit the matter down the line.

Earlier this month, Games Global had been on course to float on the NYSE, and it was on track to sell 14.5 million shares at $16 to $19, which would have given the company a valuation of $2.13 billion.

Added to that, it was thought Games Global could raise as much as $275.5 million from the sale of shares.

While Games Global notched impressive 2023 sales of $381 million, up from $178.51 million in the previous year, such data points weren’t enough to overcome what the company perceived to be testing market conditions.

Although gambling stocks across the US have been rather mixed, the NYSE has been considerably more robust.

Indeed, figures have shown that year-to-date, there have been 54 IPOs priced in the US, representing a 28.6% year-on-year jump.

Games Global, which now works with 40 in-house and partnered studios, has created over 1,300 games over the past 20 years.

It is unclear whether there was serious demand on Games Global’s part for an IPO, but this story remains fluid, and it is one to keep tabs on moving forward.