Light & Wonder Explores the Possibility of a Secondary Listing on the ASX

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Light & Wonder (LNW), a leading American electronic gaming and gambling company, has announced that it is evaluating the potential for a secondary listing on the Australian Securities Exchange (ASX). 

The listing is expected to attract domestic and international investors as the company already has a strong base of shareholders in the US and Australia. The group notes that this secondary listing will provide an essential source of capital to support ongoing growth initiatives while providing liquidity to existing shareholders.

“The ASX is a premium market with a long track record as a platform for global gaming companies and a deep and liquid pool of sophisticated investors and market participants who have a strong understanding of the gaming business,” Light & Wonder executive chair Jamie Odell said.

“We believe they will appreciate the value and long-term potential of L&W’s broad international business and strategy. We look forward to engaging with the market and our current shareholders on a potential secondary listing.”

According to Analyst David Katz, LNW is considering engaging with both equity markets to evaluate if pursuing the listing will or will not be beneficial. 

“We view the prospective benefits positively with minimal downside. The ASX has a positive history and context from other names, notably ALL, which presently trades at 10X+ NTM EBITDA according to consensus estimates, which is 3-4X higher than the current levels of the US market,” Katz said.

Katz also noted that pursuing a secondary listing on the ASX could be costly in terms of time and resources but is worth considering, given LNW’s business activities and current and potential shareholder base in the market. 

At this time, it is unclear whether LNW will pursue the listing. Regardless, the company’s success could indicate its potential growth in the Australian market should it decide to take that route.

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