Published on: September 20, 2024, at 10:19 AM.
Last updated on: September 20, 2024, at 10:19 AM.
High Roller Technologies, an iGaming operator based in Las Vegas, has reduced the size of its planned initial public offering (IPO).
In a revised Form S-1 filing with the Securities and Exchange Commission (SEC) released on Thursday, High Roller announced that it intends to sell 1.3 million shares at a proposed price of $8. Previously, the company had planned to sell 1.5 million shares at a price range of $8 to $10. The updated IPO terms suggest that the stock will debut with a market capitalization of $68 million. High Roller anticipates raising $10 million in proceeds from the offering, which is 26% less than previously anticipated.
The company is a dynamic and growth-oriented online iCasino operator of consumer brands, utilizing its online operational and marketing expertise to drive a competitive growth model. We believe that our digital intellectual property, strategic partnerships, operational experience, and customer-focused approach are key strengths that will contribute to our success,” as stated in the SEC filing.
ThinkEquity remains the exclusive book runner for the IPO. High Roller plans to be listed on the New York Stock Exchange (NYSE) under the ticker symbol “ROLR.”
Details on High Roller Technologies Decision
High Roller has not disclosed the specific reasons for its decision to reduce the IPO size, nor has it provided commentary on the state of the rapidly expanding iGaming industry.
There are various reasons why companies in all sectors may decrease IPO prices, and not all of them are negative. Price adjustments can occur if underwriters misjudged market demand or if prices are lowered to stimulate investor interest and encourage investment in a new company.
This is a common strategy used by emerging companies like High Roller. However, there are risks associated with High Roller, as the company noted in the S-1 that it heavily relies on Spike Up Media for generating leads.
“Approximately 29% and 78% of our leads were generated by Spike Up Media in 2023 and 2022, respectively. We plan to reduce this dependency through internal resources and by collaborating with other lead generation firms. Our initial payment agreements with Spike Up Media for lead generation were advantageous to us, resulting in a faster payback of customer acquisition costs compared to leads from other providers,” as stated in the regulatory filing.
Additional Information on High Roller Technologies
There may be strong demand for High Roller’s IPO, as online casinos are considered a long-term growth driver in the gaming industry due to higher margins compared to traditional casinos or sports betting.
While the iGaming investment outlook faced challenges in the US this year with no new states approving online wagering, leaving the total at six, expanding the number of jurisdictions offering internet casinos could benefit High Roller.
“High Roller Technologies is an online gaming operator that provides a real money online casino platform. Its platform features a range of gaming products, known as ‘iCasino,’ offered to players in select global markets,” noted IPO research firm Renaissance Capital. “The platform currently offers over 3,000 games, including slots, blackjack, roulette, baccarat, craps, and video poker, from more than 50 providers such as Evolution Gaming and Pragmatic Play.”