SciPlay IPO: What You Need To Know

SciPlay Corp., a developer of mobile casino games, is inviting the world into a new sort of gamble. As it hits the market this week, it wants investors to make a bet on its future.

The IPO

SciPlay will issue 22 million shares on the Nasdaq under ticker SCPL, according to the firm’s S-1 filing. Priced between $14 and $16, the offering represents 100 percent of outstanding shares and is expected to bring in $404.8 million.

The lead underwriters include Deutsche Bank, JPMorgan and Bank of America Merrill Lynch.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

The Scientific Games Corp SGMS subsidiary develops and releases free mobile games like "Monopoly Slots" and "Jackpot Party Casino." A growing number of its users make in-app purchases to unlock game features.

Last year, SciPlay achieved 2.6 million daily active users generating 43 cents in revenue each. It also reported 8.3 million monthly active users with a 5.5-percent payer conversion rate.

In the final quarter of the year, it boasted 8.6 percent of the mobile social casino market share.

The Finances

In 2018, SciPlay recorded $416.2 million in revenue amounting to a net income of $72.6. The previous year saw $361.4 million in revenue contributing to $23.1 million in net income.

The company achieved 44 percent compound annual growth in mobile revenue between 2015 and 2018.

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