Gateway Casinos & Entertainment registered an F-1 form with the U.S. Securities and Exchange Commission (SEC) in regards to its initial public offering. No pricing details were given in the filing, although the offering is valued up to $100 million. The company intends to list its shares on the NYSE under the symbol GTWY.
The sole underwriter for this offering is Morgan Stanley.
This company is one of the largest and most diversified gaming and entertainment companies in Canada, based on both the number of properties and the number of gaming positions. Its operations currently comprise 26 gaming properties in British Columbia, Ontario, and Edmonton, Alberta, with 13,618 slot machines, 429 table games, including 48 poker tables, 561 hotel rooms, 80 food and beverage (F&B) outlets, and 8,500 employees.
Gateway has a leading market position in each of the markets in which it operates. In British Columbia, the firm is one of the most diversified gaming and entertainment companies based on both the number of properties and gaming positions. Its British Columbia properties include 41% of all slot machines and 40% of all table games in the province.
The company provides operational services at six of the 14 properties in the Lower Mainland of British Columbia, a region encompassing the Sea-to-Sky Corridor, the Fraser Valley, and British Columbia’s largest market, the Greater Vancouver Regional District, or the GVRD (recently renamed the Metro Vancouver Regional District). The firm also provides operational services at three of the nine gaming properties on Vancouver Island and is the only service provider with casinos in the Thompson-Okanagan region of British Columbia, where it provides operational services at properties located in Kelowna, Vernon, Penticton, and Kamloops. In Alberta, this company is one of the largest gaming operators in the Edmonton region, where it operates two properties in prime, high-traffic entertainment districts.
In the filing, the company described its finances as:
For the nine months ended September 30, 2018, we generated total revenue of $484.3 million, income and comprehensive income of $156.2 million and Adjusted EBITDA of $122.6 million. For the year ended December 31, 2017, we generated total revenue of $478.8 million, a loss and comprehensive loss of $65.1 million and Adjusted EBITDA of $144.2 million.
The company will not receive any of the proceeds from this offering—selling shareholders will receive all of the proceeds.