SciPlay Corporation, the social gaming division of Scientific Games, has filed an IPO with the US Securities and Exchange Commission (SEC) for a minority stake in the business.
The gaming giant has not yet stated how many shares will be offered, nor the price range targeted, but that shares would be offered on the NASDAQ Global Select Market under the the ticker ‘SCPL’.
Scientific first mooted spinning off its social gaming subsidiary in November last year, despite reporting strong growth in the company just weeks later. SciPlay revenue grew 14.9 percent, to $415.9m, for the 12 months to 2018.
The group said at the time the IPO would enable it to “provide greater flexibility to pursue additional growth initiatives” and “unlock additional value” for its shareholders. Proceeds for the sale would partly pay down the company’s debts: $9.1bn as of December 31, 2018.
A range of brokers have been appointed to act as book-running manager for the offering, including Merrill Lynch, Pierce, Fenner & Smith Incorporated, JP Morgan Securities, Deutsche Bank Securities, Goldman Sachs, Morgan Stanley, Macquarie Capital and RBC Capital Markets.
SciPlay had earnings of $39m in 2018, compared with $23m in 2017. The company provides access to its ‘free-to-play’ games to allow players to begin playing at no charge and receives revenue through “additional virtual coins, cards, and chips to enable more game play.”