In addition to the craze surrounding BYND's IPO, So-Young (SY) and TransMedics Group (TMDX) also drew exceptionally strong demand yesterday. These impressive pricings set a bullish tone ahead of Uber's (UBER) landmark deal next Friday, which could propel the IPO market for some time if performs as well as anticipated.
As for SCPL, its deal raises $352 mln in total gross proceeds, which it intends to use to purchase newly issued LLC interests from SciPlay Parent and existing LLC interests from SG Holding.
The lead underwriters on the deal were BofA Merrill Lynch, JP Morgan, and Deutsche Bank. Shares are set to open for trading later this morning on the Nasdaq.
SCPL is a leading developer and publisher of digital games on mobile and web platforms. It currently offer seven core games, including social casino games Jackpot Party Casino, Gold Fish Casino, Hot Shot Casino, and Quick Hit Slots and casual games MONOPOLY Slots, Bingo Showdown, and 88 Fortunes Slots.
Its social casino games typically include slots-style play and occasionally include table games-style game play; its casual games blend slots-style or bingo game play with adventure game features. All of its games are offered by and playable on multiple platforms, including Apple, Google, Facebook, and Amazon.
In addition to its internally created games, SCPL's content library includes real-world slot and table games content from parent Scientific Games (SGMS). This content allows players who like playing land-based slot machines to enjoy some of those same titles in a free-to-play format. SCPL has access to Scientific Games' library of more than 1,500 casino titles, including titles and content from third-party licensed brands such as James Bond, Monopoly, Michael Jackson, Cheers, and The Godfather.
While most players play its games for free, a growing number of players elect to purchase additional virtual coins, cards, and chips to enable more play, which can lead to the unlocking of content and features in a shorter elapsed time than players who opt to not buy those virtual tokens.
The number of players who purchased virtual coins, cards, and chips in 4Q18 was more than triple the number of players who did so in 1Q15. This increase has driven strong revenue, net income, and AEBITDA growth.
In its IPO prospectus, SCPL provided some preliminary results for 1Q19. Specifically, the company is expecting to report revenue of $117-119 mln, equating to yr/yr growth of 21% at the mid-point. The estimated increase in revenue is primarily due to an increase in mobile revenue, which represented substantially all of the revenue increase. Web platform revenue decreased due to a decline in player levels as a result of player preferences causing a continued migration to mobile platforms.
It is expecting net income of $13-15 mln, a significant improvement from 2018's loss of ($1.1) mln. This progress is a result of revenue growth in combination with a slight decrease in operating expenses.
Lastly, the company anticipates Adj. EBITDA of $24-26 mln, up 10% yr/yr.