TheScore raises $186.3m through IPO launch
Launch sales exceed operator’s expectations as additional 900,000 shares are sold
TheScore has raised $186.3m through its IPO on Nasdaq after pricing its shares at $27 each.
The operator had expected to raise $162m through the sale of six million shares, but it sold an additional 900,000 during the offering.
Funds will be invested into growing the Toronto-headquartered media and betting company’s sportsbook in the US as well as in Canada, once the market opens up to single-event-wagering.
TheScore is also listed on the Toronto Stock Exchange but chose to pursue a US listing to attract the attention of US investors and analysts.
Comparatively, casino platform supplier GAN raised $54m via its IPO in May 2020 after transferring its shares from the London AIM exchange to the Nasdaq Capital Market.
GAN CEO Dermot Smurfit cited similar reasons to theScore for its move to a US exchange. It sought a broader investor base to enhance trading liquidity and additional research coverage by US banks.
“We believe access to the US capital market would provide compelling benefits to theScore and our investor base,” theScore CFO Alvin Lobo told analysts in January during the operator’s Q1 2021 financial year earnings.
In the three months to November 30, 2020, theScore recorded its best ever quarter as betting handle soared 535% to C$55.8m ($43.7m) on increased engagement across its media and betting platforms.
The IPO was conducted through a syndicate of underwriters led by Morgan Stanley, Credit Suisse, Canaccord Genuity, and Macquarie Capital as joint book-running managers, with Eight Capital, Cormark Securities Inc, and Scotiabank as co-managers.