Light & Wonder headed for a land Down Under as supplier eyes ASX listing
Light & Wonder (L&W) is evaluating a potential secondary listing of its shares on the Australian Securities Exchange (ASX).
This would be in addition to the company’s existing primary Nasdaq listing in the US.
As part of the evaluation, the company will be consulting with its shareholders, it added.
L&W said its board of directors has considered a range of options and sees substantial potential benefits for the company and its shareholders in pursuing a secondary listing on the ASX.
Those benefits include enhancing the firm’s profile in Australia, one of the leading markets for its gaming business, and giving the company access to new long-term Australian institutional investors.
L&W executive chair Jamie Odell: “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.”
Jamie Odell, executive chair of L&W’s board of directors, commented: “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.
“We believe they will appreciate the value and long-term potential of L&W’s broad international business and strategy.
“We look forward to engaging with the market and our current shareholders on a potential secondary listing,” he added.
L&W intends to update the market only once its evaluation is complete and it has made a decision whether to proceed with an ASX secondary listing.However, the company said there is no guarantee that it will decide to go ahead with the plans.
Not the first time
The potential secondary listing on the ASX would be a significant move for Light & Wonder as it seeks to expand its presence globally as a leading provider of cross-platform games and entertainment.
In Q4 2022, L&W reported double-digit growth across all lines of business, with an 18% year-on-year increase in revenue to $682m.
L&W has previously considered a potential secondary listing on the ASX.
The company, which was then operating as Scientific Games, engaged Australian investment bank Jarden Australia to evaluate the option almost two years ago.
Later, the company announced that it was contemplating an IPO for its SG Lottery unit in Australia.
That plan didn’t materialise, however, as L&W instead sold the lottery business, which is still known as Scientific Games, to private equity firm Brookfield.
The Las Vegas-headquartered supplier has significant connections to Australia.
Executive chair Odell is a highly respected gaming executive from Australia, and L&W’s president and CEO Matt Wilson is also Australian. Both used to work at rival supplier Aristocrat.
Odell was the CEO of Aristocrat Technologies from 2009 to 2017, while Wilson served as president and managing director of the Americas at Aristocrat before joining L&W in 2020.
Furthermore, L&W’s existing shareholder base in Australia includes one of its largest shareholders, Caledonia Investments, which currently holds 8.86% of shares in the business.