Mild & Marvel (LNW) ($6.5B market cap, $11.3B EV) is a Las Vegas based mostly maker of video gaming terminals, shuffle machines, different desk merchandise, and so forth., plus they now personal 100% of SciPlay (SCPL) after the 2023 buyout and have a rising iGaming unit. That is the outdated Scientific Video games (SGMS), they offered their lottery enterprise to Brookfield (BN) in 2022 for $5.8B and the title went with the lottery enterprise.
Mild & Marvel is endeavor an odd transfer, the corporate is at present traded in each Australia on the ASX (which they solely added as a secondary itemizing in 2023) and the U.S. on the NASDAQ, however after 11/12/25 (this coming Wednesday) the shares will likely be delisted from the NASDAQ, any remaining shares buying and selling on the NASDAQ will transfer to OTC. A well-liked technique lately to extend your a number of has been to maneuver listings to the U.S., however right here Mild & Marvel is doing the reverse which piqued my curiosity. It is a world firm, 2/3rds of their workforce is abroad, however solely 5% of their income is generated from Australia, why decide Australia? Within the firm’s personal phrases:
Rationale
The choice to transition to a sole ASX major itemizing displays Mild & Marvel’s strategic give attention to aligning our capital markets presence with our long-term progress plans and shareholder base. We’re in search of to consolidate buying and selling liquidity onto the ASX, a deep and liquid market that has a strong understanding of the gaming sector.
Translation: Multiples for gaming corporations are typically greater in Australia, for instance, The Lottery Company (ASX: TLC) trades for 20x EBITDA, Brightstar (BRSL) trades for 7x EBITDA within the U.S., there some transferring elements in there that will account for a few of the distinction, however they’re largely comparable companies. Mild & Marvel’s closest peer, trade chief Aristocrat (ASX: ALL) trades for 14x NTM EBITDA, whereas LNW trades for 8x. Aristocrat has no web debt and is considerably bigger, most likely deserves to commerce at some premium to LNW, however there’s room for LNW’s a number of to increase.
The following few days will probably have some volatility, there could possibly be some compelled promoting within the U.S. as indices kick LNW out after which on the opposite finish, compelled shopping for as Australian indices embody LNW. Moreover, LNW is accelerating its buyback, “we count on to make the most of a significant share of the remaining accessible $735MM capability previous to the tip of 2025.” Onerous to inform how this may all shake out within the close to time period.
I posed the thought on Twitter/X and acquired a pair considerate responses:
I purchased a tracker place final week, may improve it relying on what occurs. Take into account when you purchase shares on the NASDAQ, you may must get in contact together with your dealer shortly and convert the shares to the ASX (they will not robotically) in any other case be caught with shares that commerce over-the-counter.
Disclosure: I personal shares of LNW