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Targeting an enhanced profile for its Australian gaming operation, Light & Wonder (L&W) is mulling the pros and cons of a listing on the ASX.
The listing would serve as secondary to the firm’s primary public trading on the US Nasdaq exchange, with the explicit goal of supporting its Australian growth plans.
L&W detailed that its Board of Directors ‘has considered a range of options’ to pursue an AXS registration, having identified ‘substantial potential benefits’ of such a movement.
Jamie Odell, Executive Chair of the Light & Wonder Board of Directors, said: “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.”
Evaluating the bigger picture, L&W believes that trading on both exchanges would provide support for its strategic goal to become a leader in cross-platform games development, as well as enhancing shareholder value.
On a more specific, Australia-focused level, the company has outlined an ASX listing as beneficial for enhancing its profile in the country, identified as ‘one of the leading markets’ for its gaming business.
Additionally, on both a regional and international level, the firm has earmarked long-term Australian institutional investors as being potentially complementary for its existing shareholders in the country and in the US.
“We believe they will appreciate the value and long-term potential of L&W’s broad international business and strategy,” Odell continued. “We look forward to engaging with the market and our current shareholders on a potential secondary listing.”
However, L&W added that there is ‘no assurance’ an ASX listing will ultimately occur, stating that it will update the market once evaluation is complete and a decision has been made.
The listing comes after a year of major developments at L&W in 2022, with the firm undergoing a leadership transformation in October when Matt Wilson assumed CEO and President duties, taking over from Barry Cottle.
Meanwhile, the company found itself on both sides of M&A negotiations, finalising the sale of the OpenBet sportsbook platform to Endevaour for $800m, whilst completing its own acquisition of House Advantage.
L&W was able to close last year with revenue of $682m, up 18% on previous year income of $580m, tracking growth across all business segments. By securing new investment through a potential ASX listing, the firm aims to build on this momentum.
