GGRAsia – Casino tech biz L&W weighs secondary listing in Australia

Casino tech biz L&W weighs secondary listing in Australia

Mar 16, 2023 Newsdesk Industry Talk, Latest News, Top of the deck, World

Casino equipment and digital gaming content provider Light & Wonder Inc (L&W) says it is mulling a possible listing on the Australian Securities Exchange (ASX), to complement its current listing on Nasdaq in the United States.

“L&W will be consulting its shareholders as part of this evaluation,” said the group in a press release on Wednesday, adding “the board sees substantial potential benefits for the company and its shareholders”.

It said such benefits included: “Enhancing the company’s profile in Australia, one of the leading markets for the company’s gaming business,” and “giving the company access to new long-term Australian institutional investors that would complement its strong existing base of shareholders in the U.S. and Australia.”

Light & Wonder’s Nasdaq-listed stock was down 5.49 percent on Wednesday, at US$55.04 per share.

Light & Wonder said in its update that financial institutions Goldman Sachs Australia Pty Ltd and Jarden Australia Pty Ltd would “assist with its evaluation” regarding a secondary listing.

The gaming technology firm said it would “update the market” only after “its evaluation is complete and it has made a decision whether to proceed with an ASX secondary listing”. Light & Wonder added there was “no assurance” that it would pursue the move.

Jamie Odell, executive chair of Light & Wonder, was cited in Wednesday’s announcement as saying: “The ASX is a premium market with a long track record as a platform for global gaming companies and a deep and liquid pool of sophisticated investors and market participants who have a strong understanding of the gaming business.”

He added that such an investment audience would in the group’s view “appreciate the value and long-term potential of L&W’s broad international business and strategy”.

Mr Odell is a former chief executive of Australia-listed market rival Aristocrat Leisure Ltd.

Light & Wonder posted a US$21-million profit in the fourth quarter, with its revenue up 17.6 percent year-on-year. Its debt outstanding stood at US$3.9 billion as of December 31.