Floatation forecast for Scientific Games Corporation

American land-based and iGaming behemoth Scientific Games Corporation could reportedly bring in up to $3 billion via the upcoming float of its global lottery division on the Australian Securities Exchange.

According to a report from GGRAsia, the Las Vegas-headquartered firm may commence this initial public offering before the end of the week in hopes of garnering up to 14 times the lotteries arm’s most recent earnings before interest, taxation, depreciation and amortization. As such and the source detailed that Scientific Games Corporation is expecting approximately $974 million of the cash to come from ‘cornerstone’ investors after earlier telling prospective backers that the enterprise holds a 69% share of an American market thought to currently be worth roughly $101 billion a year.

Considered course:

Scientific Games Corporation reportedly began talking about a possible divestiture of its lotteries business in June following the completion of a comprehensive strategic review. The Nevada company purportedly declared that such a move could potentially allow it to ‘drive long-term sustainable value’ and de-leverage so as to reduce a deficit that currently stands in the region of $9.1 billion.

Lucrative likelihood:

GGRAsia reported that the coming move from Scientific Games Corporation could represent one of the most lucrative non-privatization floats the Sydney-headquartered bourse has ever seen and place it in the same territory as the almost $4.3 billion undertaking completed by the government-backed Medibank Private Limited in 2014. The around $7.4 billion initial public offering from telecommunications giant Telstra Corporation Limited in 1997 purportedly remains the largest such action for the Australian Securities Exchange while Latitude Financial Services holds down the top spot so far this year at about $1.9 billion courtesy of its own late-April listing.

Proposed procurement:

Scientific Games Corporation reportedly pronounced in June that it was investigating the possibility of spending as much as $1.9 billion in order to purchase the 19% stake in online casino games developer SciPlay Corporation that it does not already hold. This Nasdaq-listed target was spun off in 2019 and offers a portfolio of seven core titles encompassing the popular Gold Fish Casino, Jackpot Party Casino, Quick Hit Slots and Hot Shot Casino social titles as well as the casual Bingo Showdown, 88 Fortunes Slots and Monopoly Slots innovations.

Deliberate disposal:

More recently and Scientific Games Corporation reportedly struck a deal a little over three weeks ago to sell its OpenBet sportsbetting platform to Californian entity Endeavor Group Holdings Incorporated in exchange for $1 billion in cash and associated stock valued at about $200 million. This purportedly came exactly a year after American billionaire businessman Ronald Perelman offloaded his 34.9% stake in the company to a club of new investors that included Australian investments specialist Caledonia.