According to financial sources, the gaming technology group known as Novomatic is in preparations to offer the most prolific IPO in Austria’s history, regardless of the current change in Germany’s gaming regulations.
Headquartered in Austria, Novomatic has been a heavy hitter in the slot machine industry for years and is widely known for manufacturing a wide array of slot machine technology and equipment, and the design and implementation of gambling halls. Their plans for an IPO may be a reality in late autumn with an estimated value of at least 6 billion euros. That’s an equivalent to a cool $6.8 billion once it becomes a strong listing on the stock market.
To maintain their competitiveness, Novomatic looks forward to taking advantage of the equity market’s buoyancy but also is keeping an eye on Germany’s current rule changes towards gambling. Mainly because Germany is one of Novomatic’s valued markets.
To prepare for market changes, Novomatic has been working hard to raise the money for the IPO that will be the main funding for all of their future acquisitions and investments.
As part of Germany’s new gambling regulations, as of July 1, all gambling halls will be required to maintain a max distance of 500 meters in between halls depending on which German state regulation the gambling hall falls under.
Individually, a gambling hall will be disallowed more than one license. The new regulation will oversee that each gambling hall has only one license to operate a maximum of 12 slot machines.
According to gambling regulation expert Dirk Uwer, of the Hengeler Mueller law firm, stated that although there have been many disputes concerning the regulations and the closure of gambling halls, the fact of the matter is that it could take many years before anything like that could be decided.
The worst thing that could happen because of the regulation is that the amount of technology sold related to gambling could see a steady decline throughout Germany.
With many potential cities for the IPO to be presented, the latest news is that London will most likely be the city of choice in the coming weeks.
According to a source, as part of the IPO listing, Novomatic plans to add up to 30% of stock to its initial offer. This will create an instant value worth over 6 billion euros. This would put Novomatic as the biggest IPO to have come out of Austria.
To establish global coordination of their IPO, Novomatic has partnered with Credit Suisse and Bank of America. As well as Commerzbank, UBS, and UniCredit acting as their book runner. Their legal advisor is the Skadden law firm and the role of IPO advisor will be managed by Macquarie.
Besides being owned by Novomatic founder, Johann Graf also oversees many other sport betting networks and casinos.
In comparison, Novomatic has no other similar peers that have made listings. So this IPO will place Novomatic in a class of their own once it becomes an official offer.
Following the IPO listing this year, Novomatic will plan to have their earnings posted prior to any tax, interest, depreciation or the elimination of over 600 million euros.
According to the Novomatic website, the company has over 28,000 employees and at least one subsidiary in more than 50 countries. In 2015 alone Novomatic has managed to generate 3.9 billion euros.