Light & Wonder Mulls Possibility of Sole Listing on ASX
Light & Wonder (NASDAQ: LNW) announced it is exploring the possibility of listing options for its shares, such as incorporating the Australian Securities Exchange (ASX) as a main platform or exclusively trading the stock there.
The game console maker expressed that sentiment alongside its fourth-quarter earnings announcement — information that has the stock climbing today. La empresa Light & Wonder, ubicada en Las Vegas, informó a los inversores que contrató a Jarden Australia y Goldman Sachs para evaluar opciones de cotización.
"The Company remains focused on enhancing the liquidity and market capitalization of its ASX listing, and as part of this will be considering both a dual primary and a sole listing on the ASX,” it said in a statement. “L&W will be seeking feedback from key stakeholders to ensure an optimal outcome for L&W shareholders.”
Light & Wonder has been nearly two years since it listed its shares in Sydney. While this is viewed as a secondary listing with Nasdaq as the main trading platform for the stock, the ASX listing accounts for 30% of the company's market value.
Increased Focus on Australia Might Benefit L&W Stock
Certain Australian market players, especially professionals, have a deep understanding of Light & Wonder, suggesting it would be sensible for the company to explore an additional primary or sole listing there to expand its investor base.
Moreover, Australia is perceived as a market where investors are more inclined to attribute fair value to manufacturers of slot machines. It’s also the native market for the biggest company in the sector, Aristocrat Leisure. This is significant as it indicates not only Aussie investors' knowledge of gaming stocks but also a readiness to perhaps value the shares more accurately than investors in other areas.
Two gaming firms, including Aristocrat, rank among the 50 largest ASX-listed companies by market value. With a current market valuation of $8.64 billion, Light & Wonder would instantly become part of that group if it chooses to pursue a single listing in that nation.
The ASX is a leading exchange with a rich history of aiding global gaming firms, providing access to a broad and fluid market of knowledgeable investors and industry stakeholders who possess a thorough understanding of the gaming industry. "We are eager to connect with the market and our current shareholders to enhance the visibility of our ASX listing," stated Jamie Odell, chair of L&W’s board of directors, in the statement.
The quantity of slot stocks listed in the US may decrease.
If Light & Wonder decides to choose the ASX as the exclusive trading venue for its shares, this action would further reduce the pool of slot machine stocks available for trading in the US.
PlayAGS (NYSE: AGS) is set to be acquired by Brightstar Capital Partners, indicating that the company will become privately held. Furthermore, the private equity firm Apollo Global Management is acquiring Everi (NYSE: EVRI) along with the global gaming and PlayDigital divisions of International Game Technology (NYSE: IGT).
That deal will remove shares of gaming device manufacturer Everi from circulation, leaving the remaining IGT concentrated on lottery business.
