Games Global has announced the postponement of its initial public offering (IPO) despite what was believed to be strong interest from investors.
Games Global’s Board of Directors stated that the best interests of its stakeholders is to delay the IPO and continue to monitor timing for the proposed offering. The supplier will also continue to evaluate all strategic opportunities that align with its long-term strategy.
“While we are disappointed not to be entering the public markets in the near term, meeting with investors during this IPO process has further cemented our confidence in our strategy and that what we are building at Games Global is unique,” Games Global CEO Walter Bugno said.
“With a strong balance sheet, healthy margins and meaningful growth, an IPO at this point in time was an accelerator, not an absolute necessity, for our business strategy. Our team remains committed to delivering the most innovative games on the market. We will continue to monitor the capital markets going forward and make the appropriate reconsiderations as to an IPO in the future.”
The supplier was set to offer 14.5 million shares, six million of which would be sold directly by Games Global and the other 8.5 million was to be sold by the supplier’s existing shareholders. Games Global was hoping to raise as much as $275.5m through the sale and was looking for a valuation of up to $2.13bn in the IPO.
It is a surprising move to postpone the IPO given that the supplier was moving away from the typical path of being a public company to becoming private and its continued positive performance in business.
Games Global also recently entered the US gaming market after its purchase of Digital Gaming Corporation’s (DGC) B2B assets from Super Group in February. Games Global described the acquisition at the time as “a significant company milestone.”
