Scientific Games Reportedly Considering Australia IPO to Cut Debt

Gaming equipment producer Scientific Games (NASDAQ:SGMS) may follow weighing an initial public offering (IPO) on the Aboriginal Australian Stock Exchange (ASX) as boulevard for trimming a monumental debt burden.

The Las Vegas-based companion reportedly occupied Aussie investment funds camber Jarden Australia to crackle the information on a Sydney itemization as it looks for ways to bring down substantive liabilities.

An ASX-listing is believed to be just now 1 alternative on the table, all the same sources said it was a serious consideration,” reports The Aboriginal Australian Financial Review.

In add-on to manufacturing one-armed bandit machines, Scientific Games also provides lottery services to states and wagering platforms to sportsbooks. Despite an array of cost-cutting measures at the height of the coronavirus pandemic, the fellowship ease carries $9.43 one million million inwards debt — to a greater extent than $4 1000000000 to a greater extent than its $5.40 one thousand million securities industry capitalization. Its enterprisingness value, a combination of debt, marketplace note value and immediate payment on the equipoise sheet, is nearly $20 billion.

Deep Ties John L. H. Down Under

Scientific Games has ties to Commonwealth of Australia that piss a Sydney offering practical.

For example, plank fellow member Jamie Odell is a well-respected Aussie gaming executive and antecedently ran Aristocrat — the world’s largest expansion slot political machine maker — for 10 years. He’s also a voice of Caledonia Investments, which shoemaker's last year purchased a $1 1000000000000 wager inwards Scientific Games from financier Daffo Perelman.

“Also mired at Scientific Games is Toni Korsanos, another former Aristocrat Leisure executive director now plying her switch on the boards of Crown Resorts and Treasury obligations Wine Estates. Korsanos is Scientific Games’ executive vice chair. Jarden advised Odell and Korsanos when they bought in in conclusion year,” according to the Australian Financial Review.

Sydney IPO Makes Sense

Scientific Games selling shares on the ASX is practical on other levels. First, Australia is place to single of the largest, most grow gaming markets inwards the world, indicating the listing could come across with pro and retail investors that are familiar spirit with the brand.

Second, Aussie gaming stocks, similar their US counterparts, are soaring due inwards piece to devoted denizens of sports bettors — something Scientific games offers purchase to. Reflecting that ebullience, the stock is higher past nearly 368 percent over the past times year, well(p) for single of the best performances among all domestically traded gaming equities.

Should the Las Vegas troupe opt against a Sydney IPO, it has other avenues for reducing debt. It ease owns a monolithic per centum of online and social casino developer SciPlay (NASDAQ:SCPL).

When Caledonia purchased the Scientific Games equity cobbler's last year, analysts speculated the investment strong could pushing to concentrate the SciPlay post — and so 83 percent — to put forward upper-case letter and trim liabilities. With shares of the mobile games developer upwards 26.50 percent year-to-date, Scientific Games could ten-strike piece the branding iron is hot to farther monetise its SciPlay position.