Gambling Software Provider GAN Set for $30m US IPO

  • Company set to issue 4m+ ordinary shares, IPO price expected between $6.50 and $8.50
  • Plans to be listed on the Nasdaq under the GAN ticker symbol in May
  • Funds raised through the IPO will be used for working capital and general corporate purposes
  • Listing expected to grow capital as GAN focuses on the expanding US market
Nasdaq sign
Gambling software provider GAN is set to hold an IPO on the Nasdaq in May. [Image: Shutterstock.com]

A plan to go public

GAN Limited, an online gambling software company based in the UK, announced its initial public offering (IPO) terms on Monday. The firm aims to raise $30m through the issuance of 4,055,000 ordinary shares, with a price range of between $6.50 and $8.50. GAN will have a $206m fully diluted market value if the midpoint is reached. 

IPO pricing set to take place during the week beginning May 4

The plan is to have a Nasdaq listing under the GAN ticker symbol. The only book runner for this offering is B. Riley FBR, with the IPO pricing set to take place during the week beginning May 4.

GAN plans to use the money raised for working capital and general purposes such as marketing, sales, capital expenditure, and product development. 

Reasons for the IPO

Earlier this month, GAN provided a number of reasons for going public on the Nasdaq. It believes that, by having a listing on one of the large US exchanges, its capital can grow faster.

eyeing up the ever-expanding US online sports betting and gambling markets

The company has also been eyeing up the ever-expanding US online sports betting and gambling markets. In 2019, approximately 80% of GAN’s revenue came from US sources. One of its most recent deals was a partnership with Michigan’s Sault Tribe as the provider of sports betting software for its casino operations.

GAN is going ahead with its US IPO at a time when the coronavirus pandemic has crushed a lot of major gambling stocks. Dividends have been cut, profit warnings issued, and government aid called for in numerous cases across UK and US markets.

GAN’s other listings

GAN has its headquarters in London and has been in operation since 2002. For the year ended December 31, 2019, it had sales of $30m. 

The firm is already listed on London’s Alternative Investment Market (AIM) and in the United States in an over-the-counter manner also using the GMMNF ticker. Both allow smaller companies to attract speculative investors. When GAN is listed on the Nasdaq, the two other listings will conclude and investors will get stakes in the new listing. 

Daily fantasy sports and sports betting operator DraftKings also went public in April, doing so through a reverse merger rather than an IPO. It is now listed on the Nasdaq under the DKNG ticker symbol.