SciPlay Gears Up for IPO

SciPlay has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were mentioned in the filing, but the offering is valued up to $100 million. The company intends to list its shares on the Nasdaq under the symbol SCPL.

The underwriters for the offering are Merrill Lynch, JPMorgan, Deutsche Bank, Goldman Sachs, Morgan Stanley, Macquarie Capital, RBC Capital Markets, Stifel, and Wedbush.

This is a leading developer and publisher of digital games on mobile and web platforms. SciPlay creates its games around compelling user experiences, often using authentic land-based content from Scientific Games to anchor these experiences. Its 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 over six years later.

During the fourth quarter of 2018, SciPlay’s 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 roughly 32% of the monthly players playing every day, for an average of 54 minutes each day. During that same quarter, the firm achieved an 8.6% share of the mobile social casino market and its revenue growth was 5.5 times as high as the social casino market average.

Total revenue has grown from $168.8 million in 2015 to $416.2 million in 2018, representing a compound annual growth rate (CAGR) of 35%. The mobile portion of revenue has grown from $109.4 million in 2015 to $323.3 million in 2018, representing a CAGR of 44%. The average CAGR for mobile revenue in the social gaming industry was 25% over the same period.

The company intends to use the net proceeds from this offering to purchase LLC interests from SG Holding I and SciPlay Parent LLC.

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