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Casino gaming firm files for $100m IPO


Casino gaming firm files for 100m IPO

PlayAGS, a leading supplier of gaming machines and table products to casinos has filed with the U.S. Securities and Exchange Commission (SEC) to raise $100 million in an initial public offering.

The announcement appears in an article on IPO investment manager Renaissance Capital's website renaissancecapital.com. Based out of Las Vegas NV, PlayAGS was set up in 2005 and has $197 million booked in sales for the 12 months ended September 30, 2017.

The casino gaming company plans to apply for listing on the New York Stock Exchange (NYSE) under the symbol AGS shortly. Credit Suisse, Deutsche Bank, Macquarie Capital, SunTrust Robinson Humphrey, BofA Merrill Lynch, Jefferies, Citi, Stifel and Nomura Securities are some of the book runners on the deal.

The filed statement only said that the gaming machine maker expects to raise $100 million in the offering, without mentioning the number of shares it plans to offer.

According to the company’s financials, PlayAGS suffered a loss of $35.9 million in the nine months ended September 30, 2017, and also a loss of $63.3 million in the same period in the previous year. In that period, revenue for PlayAGS rose to $154.3 million from $124.1 million.

The public offering comes at a time Renaissance IPO ETF IPO registered gains of 5.9 percent over the past three months. The S&P 500 SPX, too, has surged to 7.1 percent.

AGS LLC is a company with its roots in the Class II Native American gaming market. The product portfolio of the company includes Class II and Class III slot products, table products, social casino solutions for players and operators.

The gaming firm recently acquired 1,600 Class II gaming machines for the key markets such as California, Oklahoma, Montana, Washington and Texas. With the newly purchased machines, the Company’s installed base of gaming machines has grown to 23,600 units.