Gambling-software company Games Global valued at about $2 billion in IPO

By Steve Gelsi

Isle of Man-based gambling-software company to raise about $254 million in U.S. IPO

Games Global Ltd. has set its estimated price range in its upcoming U.S. initial public offering with a proposed market capitalization of about $2 billion for the Isle of Mann-based gambling-software company.

Games Global plans to offer 14.5 million shares at an estimated price range of $16 to $19 for trading on the New York Stock Exchange under the symbol GGL with underwriters J.P. Morgan, Jefferies, Macquarie Capital and Barclays, according to a late-Thursday filing.

The IPO is expected to start trading on May 13, according to IPOscoop.com.

At the midpoint of the estimated price range, Games Global will raise about $254 million.

With 112.02 million shares outstanding in the IPO, Games Global will have a market capitalization of about $1.96 billion based on an IPO price of $17.50 a share.

Games Global plans to sell 6 million out of the IPO's 14.5 million shares, while selling shareholder Zinnia Ltd. will offer 8.5 million shares.

Zinnia Ltd. will retain a roughly 85% stake in the company after the IPO, if the underwriters exercise in full their option to purchase additional ordinary shares, according to the filing.

The IPO comes after other gambling stocks have gained this year.

DraftKings' (DKNG) stock has risen 22% in 2024, while Flutter Entertainment Plc (FLU), which owns FanDuel, is up by 7%. The Nasdaq COMP up 5.5% this year.

Games Global was incorporated in 2021 as a carve-out of the game development business of Fusion Holdings Ltd., "with the strategic vision of creating the largest and most innovative iGaming studio and distribution ecosystem in the world," according to the company's prospectus.

The company reported a full-year 2023 profit of 107.84 million euros ($115.5 million) on revenue of 306.93 million euros, up from a profit of 97.3 million euros and revenue of 168.3 million euros in 2022.

The IPO comes after Games Global moved into the U.S. market with its February acquisition of assets of Digital Gaming Corp.

At last check, Games Global has 40 exclusive studios, more than 1,300 proprietary games, and "some of the industry's highest paying progressive jackpot network."

The DGC deal has given Game Global distribution coverage in New Jersey, Pennsylvania and Michigan.

The company plans to expand its distribution coverage in Connecticut and West Virginia, while eight more states have either previously proposed or are in discussions to propose enabling online-casino legislation in 2024 or 2025.

The U.S. is also the largest iGaming market in the world, with a total projected, addressable market of approximately $26 billion by 2028 for online slot and table games, iLottery, online poker and online video bingo, according to H2GC data cited by the company.

The IPO from Games Global comes after the U.S.'s largest IPO of 2024 earlier this week, as cruise operator Viking Holdings Ltd. (VIK) debuted at $24 a share on Wednesday.

Viking Holdings stock was up 1.2% to $27.32 in premarket trading on Friday.

Also read: Cruise operator Viking's IPO values company at $10.36 billion to mark biggest deal of year

-Steve Gelsi

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05-03-24 0909ET

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