American gaming group Light & Wonder said on Wednesday it was considering a sole Australian stock market listing in a deal that could benefit the country’s weak listings market.
Light & Wonder, listed on the Nasdaq with a $9 billion market cap, said it had hired investment banks Jarden and Goldman Sachs to work on a listing proposal.
The company trades Chess Depository Instruments (CDIs) on the ASX through a secondary listing but said it was considering a dual primary listing or a sole Australian listing.
It said about 30% of the company’s shares were owned through the ASX CDI listing.
The potential sole listing comes as Australian regulators urge the country’s stock exchange to streamline listing rules that would help more companies become publicly-traded entities. IPO volumes in Australia are languishing at near decade lows.
Light & Wonder announced earlier this month it would pay $1.05 billion for Grover Gaming’s charitable gaming assets as part of its US business expansion.
The company’s Australian-listed shares were up 4.4% on Wednesday after it reported a 10% increase in full-year revenue to $3.2 billion. The Australian shares are trading 20% higher year to date, outpacing a 17.5% gain in its US stock.
Light & Wonder’s Chairman Jamie Odell said Australia had a track record of backing global gaming companies and offered “access to a deep and liquid market of sophisticated investors and industry participants with a comprehensive understanding of the gaming sector”.
Reuters
