Scientific Games Corporation, the well-known American provider of gambling products and services, is ready to launch a new global lotteries business whose initial public offering (IPO) might take place on the Australian stock exchange.
The initial public offering is estimated to be worth around 5 billion Australian dollars. The news of the company’s intentions comes just one week after the American firm revealed its plans to divest its Lottery and Sports Betting businesses.
For now, the plan to launch the lottery business on the Australian stock exchange is still at the initial pitching stage. However, it could lead to the launch of an initial public offering pretty soon, which would bring the 5 billion Australian dollars to Scientific Games Corporation.
At this stage the company could also select another stock exchange for the IPO launch. However, if it does end up choosing Australia, the initial public offering could become one of the biggest non-privatisation IPOs in the history of the Australian Stock Exchange.
SciGames Lotteries, the lottery division of the Scientific Games Corporation, recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of 570 million Australian dollars over the past twelve months. The lottery side of the business also managed to record a 36 percent increase in revenue year-on-year.
According to the Australian media, Scientific Games has contacted Sydney-based investment bank Jarden Australia to ask for help in forecasting what the IPO launch on the Australian Stock Exchange could do for the company.