theScore Completed IPO, Underwriters’ Over-Allotment in Full

Score Media and Gaming Inc. successfully completed its US initial public offering (IPO), placing 6.9 million of company’s Class A Subordinate Voting Shares and gaining $186.3 million in gross proceeds.

IPO Launch

Last month, theScore announced it launched a public offering of company stock in both Canada and the US as part of its IPO in the US, including filing for application to list the related to the offering Class A Shares on the NASDAQ.

Prior to the IPO announcement, theScore began preparations for the offering by implementing a reverse stock split of its outstanding Class A Shares by combining 10 old Class A Shares into 1 new Class A Share, applying the same consolidation ratio to the company’s Special Voting Shares.

Based on parameters approved by shareholders at theScore during the annual general meeting (AGM) and the special shareholder meeting held February 10, 2021, the board of directors determined the 10 to 1 consolidation ratio for the reverse stock split.

For the IPO, the company hired a syndicate of underwriters, Morgan Stanley, Credit Suisse, Canaccord Genuity and Macquarie Capital, to operate as joint-book runners, and Eight Capital, Cormark Securities Inc. and Scotiabank as co-managers of the IPO.

IPO Completion

The IPO managed to place a total of 6.9 million Class A Shares, including 900,000 from the option theScore granted underwriters for a 15% over-allotment exercisable for a period of 30 days from the date of the closing of the offering, which they exercised in full, at a price of $27 per share.

The company is expecting to use the net proceeds of the offering to fund working capital and for other general corporate purposes, among which the continued expansion into US and Canada jurisdictions for theScore Bet, including for customer acquisition and retention.

The sports betting brand of the company, theScore Bet, launched officially in Iowa last month to expand its presence into 4 states, besides New Jersey, Colorado and Indiana, and is having a deal with Penn National Gaming which allows it market access into all 11 states in which Penn’s properties operate.

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