Online gambling industry marketing services provider Gambling.com surprisingly slashed the pricing of its initial public offering (IPO), as well as the quantity of shares available to investors, before going public.
Revised Price and Share Quantity
Gambling.com is now offering 5,250,000 ordinary shares priced at $8 per share, bringing the total valuation of the company down by $135 million, from $439.5 million to $304.3 million.
The previously disclosed amount of 7,500,000 ordinary shares was slashed by the shares offered by certain selling shareholders, 2,250,000, as they are no longer willing to sell at the reduced price. Earlier, Gambling.com announced its IPO price was estimated to be between $11 and $13 per ordinary share.
The initially announced over-allotment of 1,125,000 ordinary shares to underwriters that was made available for purchase by the selling shareholders is now replaced by a reduced amount, as Gambling.com is offering underwriters a 30-day option to buy an additional amount of up to 787,500 ordinary shares at the proposed price, less underwriting discounts and commissions.
Jefferies LLC is acting as a lead book-running manager, representing the underwriters of the IPO, while Stifel, Nicolaus & Company, Inc. and Truist Securities, Inc. will be acting as the book-running managers of the offering.
The IPO will be made available only by means of a prospectus, and each investor interested in the offering can obtain a copy of the final prospectus by contacting the lead book-running manager Jefferies.
Gambling.com has begun trading on the NASDAQ Global Market today, July 23, under “GAMB” ticker symbol, while the IPO should close by July 27, 2021, subject to the satisfaction of customary closing conditions. As of this publication, the stock was trading at $7.80 after having risen to $8.64 shortly after launch.
The company informed a registration statement of the securities subject of the offering was already filed with the Securities and Exchange Commission (SEC) and was declared effective on July 22, 2021.
Founded in 2006, Gambling.com is a provider of digital marketing services for the online gambling industry. Utilizing its proprietary technology platform, the company is looking to inform and educate online gamblers by providing them with a comprehensive set of resources to help them make their choice for an online gambling operator.
Currently operating more than 30 websites in 6 languages across 13 regulated gaming jurisdictions, part of Gambling.com’s objective is to protect players by steering them away from offshore gambling firms and channeling them towards legally licensed operators.
Financial performance of Gambling.com for the first three months ended March 31, 2021 recorded net income of $4.5 million with revenues of $11.5 million.