PlayAGS 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 given in the filing, although the offering is valued up to $100 million. The company intends to list its shares on the New York Stock Exchange under the symbol AGS.
The underwriters for the offering are Credit Suisse, Deutsche Bank, Jefferies, Macquarie, Merrill Lynch, Citigroup, Nomura, Stifel, SunTrust Robinson Humphrey, Roth Capital Partners, Union Gaming, Williams Capital Group and Apollo Global Securities.
This is a leading designer and supplier of electronic gaming machines (EGMs) and other products and services for the gaming industry. Founded in 2005, PlayAGS historically focused on supplying EGMs, including slot machines, video bingo machines and other electronic gaming devices, to the Native American gaming market, where it maintained an approximately 20% market share of all Class II EGMs.
Since 2014, the company has expanded its product line-up to include:
- Class III EGMs for commercial and Native American casinos
- Table game products
- Interactive products
These all provide PlayAGS with growth opportunities as it expands in markets where it currently has limited or no presence. The expansion into Class III and ancillary product offerings has driven strong growth and momentum in revenue, EGM adjusted EBITDA and its installed base, which have increased by 173%, 158% and 152%, respectively, since 2014. For the past 12 months, approximately 83% of total revenue was generated from recurring contracted lease agreements.
The company intends to use the net proceeds from this offering to pay down its debt, with the remainder going toward working capital and general corporate purposes.