SciPlay Corp IPO – What you need to know

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The IPO

SciPlay Corp filed for an IPO with NASDAQ under the symbol “SCPL”.

SciPlay plans to raise $330 million by offering 22 million shares at a price range of $14.00 – $16.00. SciPlay market capitalization would be $1.8 billion.

BofA Merrill Lynch, J.P. Morgan and Deutsche Bank Securities act as managers to the deal, whilst Goldman Sachs, Morgan Stanley, Macquarie Capital, RBC Capital Markets, Stifel and Wedbush Securities act as co-managers. The IPO is expected to price on May 3, 2019.

The Business

SciPlay is a leading developer and publisher of digital games on mobile and web platforms. Their total revenue has grown from $168.8 million in 2015 to $416.2 million in 2018, representing a compound annual growth rate, or CAGR, of 35%. The mobile portion of the revenue has grown from $109.4 million in 2015 to $323.3 million in 2018, representing a CAGR of 44%. According to data from Eilers & Krejcik, the average CAGR for mobile revenue in the social casino industry was 25% over the same period. They create their games around compelling user experiences, often using authentic land-based content from Scientific Games to anchor these experiences. Their first social game, Jackpot Party Casino, has continued to grow since its launch in 2012, with many of the players who began playing in 2012 still playing six years later. During the fourth quarter of 2018, their games were played by a total of more than 11.6 million players. Of those players, more than 8.4 million played each month, with approximately 32% of the monthly players playing every day, for an average of 54 minutes each day. During that same quarter, according to Eilers & Krejcik, they achieved an 8.6% share of the mobile social casino market and their revenue growth was 5.5 times as high as the social casino market average.

The IPO is expected to trade on NASDAQ on May 3, 2019