SciGames rounds up big IB syndicate for huge lotteries float

Five Australian investment banking teams look like hitting the jackpot at US gaming company Scientific Games as it mulls floating its whopping global lotteries business on the Australian Securities Exchange.

Should SciGames sign the five as expected, it would be a big and powerful syndicate and indicative of just how big the company thinks its lotteries unit could be as an ASX-listed company and the quantum of funds it would be looking to raise at the mooted IPO.

Australian gaming analysts reckon it could shoot for at least a 16-times to 18-times multiple, which is how they’re also thinking about Tabcorp’s soon to be spun off lotteries business.

That’s an argument Cottle and Co, and his brokers, will have to take up with Australian and global fund managers and analysts should SciGames lotteries head down the ASX-listing route.

Whatever the case, if you put the Tabcorp lotteries on SciGames’ unit, you are looking at a $US7 billion to $US8.5 billion company on an enterprise value basis.

While it is early days, and there are plenty of variables, it’s fair to say SciGames lotteries would be in the same ballpark as Medibank Private when it comes to Australian IPOs.

Five Australian investment banking teams look like hitting the jackpot at US gaming company Scientific Games as it mulls floating its whopping global lotteries business on the Australian Securities Exchange.