Online Gaming Software Behemoth GAN Planning to Go Public in May

Online Gaming Software Behemoth GAN Planning to Go Public in May

The gaming industry has been feeling the pressure of handling a global pandemic head-on. Most land-based casinos in the gaming hubs of Macau, China, and the US have been shut and sports betting opportunities have been slim. In the middle of this unprecedented situation. UK-based GAN Ltd. announced that it is planning to launch an IPO on a US based exchange next month.

A slight pushback on timing

GAN was originally planning to get itself listed on a US exchange by April end but decided to push back the date slightly. It now hopes that it will be public in the first week of May on NASDAQ (most likely option) with the ticker GAN. It is hoping to raise $34.5 million from the public offering. The number seems highly optimistic as of now because investors are being more careful while buying any new offerings. Last year, US investors participated in several high-profile IPOs that didn’t pay as much.

Online Gaming Software Behemoth GAN Planning to Go Public in May

The gaming industry has suffered extensively because of the pandemic and stocks of companies have dropped by over 70%.  However, GAN is still sitting on a solid foundation. Online gaming has remained relatively unaffected because of the lockdown. Moreover, there could be a broader push to legalize gaming and sports gambling in the US, which could benefit the company.

Several US sports have already legalized sports betting while others are considering their options. The pandemic has halted their actions but it is likely that sports betting bills will return as soon as the situation comes back to normal. States will be short of revenue and will see sports betting and gaming legalization or expansion as a good way to fill their coffers.

US business is important for GAN

In 2019, the company received 80% of its business from American clients because of which it is good for the company to go public in the US. The expected recovery process of casinos and sportsbooks will also begin in May, which will help the company gain some momentum. It will be able to leverage on new clients that come by.

It has already teamed up with Michigan’s Sault Tribe to offer sports gambling software for its operations. As a software provider, it has great potential for expansion in the US.

During the IPO, the company is expected to over 4.05 million of its shares at $6.50 to $8.50 per share.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.