High Roller Technologies, a Las Vegas-based iGaming operator, trimmed the size of its proposed initial public offering (IPO).
In an amended Form S-1 filing with the Securities and Exchange Commission (SEC) released Thursday, High Roller said it’s planning to sell 1.3 million shares at a proposed price of $8. Previously, the company said it would sell 1.5 million shares at $8 to $10. The revised IPO terms imply the stock will debut with a market capitalization of $68 million. High Roller expects to raise $10 million in proceeds from the offering, or 26% less than previously forecast.
The company is an evolving and growth-oriented online iCasino operator of business to consumer brands, leveraging its online operational and marketing expertise and assets as the foundation for what we believe to be a highly competitive growth model. We believe that the combination of our digital intellectual property, commercial partnerships, operational expertise of our management team, and customer-centric approach that fosters loyalty are among our competitive strength,” according to the SEC filing.
ThinkEquity remains the sole book runner for the IPO. High Roller plans to list on the New York Stock Exchange (NYSE) under the ticker “ROLR.”
Details Scant on High Roller Technologies Decision
High Roller didn’t divulge details about why it decided to trim its IPO size, nor did it make specific commentary about the state of the fast-growing iGaming industry.
There are various reasons why companies across all industries cut IPO prices and they’re not all negative. An IPO price can be reduced because underwriters didn’t adequately estimate demand in the market or the price can be lowered to stoke demand among investors, encouraging them to take a risk on a new company.
That’s a strategy often used by emerging growth companies of which High Roller is one. There’s also some risk with High Roller as the company acknowledged in the S-1, it’s heavily dependent on Spike Up Media for leads.
“Approximately 29% and 78% of our leads were generated by Spike Up Media during 2023 and 2022, respectively. We plan to continue mitigating this dependency through internal staffing and by working with other lead generators. Our initial payment arrangements with Spike Up Media for lead generation were at favorable rates to us resulting in more rapid payback of customer acquisition costs than we might otherwise expect from leads generated by other unaffiliated providers,” according to the regulatory filing.
More High Roller Technologies Details
There could be strong demand for High Roller’s IPO because online casinos are widely viewed as the long-term growth engine in the gaming industry as that form of wagering offers higher margins than land-based casinos or sports betting.
The iGaming investment thesis hit headwinds in the US this year as no new states approved that form of wagering, leaving the total at six. More jurisdictions getting on board with internet casinos could be beneficial to High Roller.
“High Roller Technologies is an online gaming operator that offers a real money online casino platform. Its platform is based around a set of gaming products, which it refers to as ‘iCasino’ and is offered to players in select markets throughout the world,” noted IPO research firm Renaissance Capital. “It currently offers more than 3,000 games, including video slots, blackjack, roulette, baccarat, craps, and video poker, and its 50+ providers include names like Evolution Gaming and Pragmatic Play, among others.”
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