NeoGames, a Luxembourg-registered, Israel-headquartered digital lottery software provider backed by betting firm William Hill, raised $81.7m in its initial public offering yesterday.
The company issued nearly 2.63 million shares on the Nasdaq Global Market while its shareholders divested a further 2.18 million shares. They were priced at $17.00 each, above the IPO’s $14 to $16 range.
Spun off by online gaming technology provider Aspire in 2014, NeoGames offers technology that enables lottery operators to sell tickets and run specialist games online.
The company’s revenue declined year on year from $35.2m to $24.1m in the first nine months of 2020, with a corresponding $4m profit turning to a $3.3m net loss.
William Hill invested $25m in NeoGames in 2015. It sold almost $11.5m of shares in the offering and its 30.9% stake was cut to 24.9%.
NeoGames’ other notable shareholders, Aspire executives Elyahu Azur and Pinas Zahavi, each sold $5.5m of shares to come out with a 13.3% stake post-IPO.
Stifel was lead bookrunner for the IPO while Macquarie Capital and Truist Securities were joint bookrunners. The company’s shares opened at $21.70 yesterday and closed at $21.87 to give it a valuation of approximately $538m.
