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Posted on: February 22, 2021, 03:16h.
Final up to date on: February 22, 2021, 03:38h.
Todd Shriber Learn Extra
Canadian sportsbook operator and sports activities media firm Rating Media & Gaming is commencing a US preliminary public providing (IPO). The transfer units the stage for the agency to maneuver its fairness to the Nasdaq International Choose Market.
Rating Media CEO John Levy. His firm is planning a US IPO and a transfer to the Nasdaq. (Picture: USA Right now)
The information comes barely greater than week after the corporate revealed plans for a reverse break up. That company motion lowered the shares excellent whereas growing the share value, higher positioning the gaming operator to obtain a list on a serious US trade.
In an announcement launched after the shut of US markets Monday, Rating Media mentioned it plans to promote 5 million shares within the US IPO. Underwriters Morgan Stanley, Credit score Suisse, Canaccord Genuity, and Macquarie Capital can have 30-day window wherein they’ll buy a further 15 p.c, which means the providing might embody as many as 5.75 million shares.
The Firm at the moment expects that the web proceeds of the providing will likely be used to fund working capital and different common company functions, together with the continued development and enlargement of theScore Wager’s operations in the US and Canada by supporting the multi-jurisdiction deployment and operation of theScore Wager and person acquisition and retention in jurisdictions the place theScore is, or will likely be, working,” in keeping with the assertion.
The corporate’s ScoreBet cell app is at the moment stay in Colorado, Indiana, and New Jersey.
theScore is Shifting on Up
Information of the IPO and Nasdaq commencement caps a busy, optimistic interval for Rating Media. Final week, Canada’s parliament permitted single-game sports activities betting.
Previous to passage of that laws, theScore was broadly highlighted as one of many greatest beneficiaries of its residence nation modernizing sports activities wagering. The operator enjoys superior model recognition and powerful market share in Canada.
Relating to the US itemizing, that’s a win for Rating Media, as a result of it places the inventory in entrance of a wider institutional viewers at a time when enthusiasm for iGaming and sports activities wagering equities is reaching a fevered pitch. Moreover, itemizing on a serious US trade will increase an organization’s entry to capital.
theScore IPO Particulars
The Toronto-based firm didn’t say precisely how a lot will likely be raised by way of the US IPO. Quite, it famous the “providing will likely be priced within the context of the market, with phrases, together with value per share, to be decided on the time of getting into into an underwriting settlement with the underwriters.”
It’s US over-the-counter-traded shares closed at $30.59 immediately. Assuming an providing value of $30 and a sale of the complete allotment of 5.75 million shares, theScore will elevate $172.5 million. However that determine hasn’t been confirmed by the corporate.
When the inventory lists on Nasdaq, it should commerce below the ticker “SCR” — the identical identifier the corporate makes use of for its Toronto Inventory Trade (TSX) itemizing. The TSX itemizing will likely be maintained following the US IPO.
The information can be a boon for Penn Nationwide Gaming (NASDAQ:PENN), as a result of the regional gaming behemoth and upstart sports activities betting participant owns 4.7 p.c of Rating Media. Assuming buyers have urge for food for theScore shares, Penn has an appreciating asset sitting on its books and one it might probably simply divest ought to it want capital.
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