Towering entertainment company, Light & Wonder, relinquishes its Nasdaq listing, targeting a sole Australian stock exchange voting in its place.
Global Gaming Tech Giant Light & Wonder to Focus Exclusively on ASX
In a significant move, Light & Wonder, a leading player in the gaming technology industry, has announced its intention to delist from the Nasdaq Stock Exchange and focus exclusively on the Australian Securities Exchange (ASX) by the end of November 2025. This decision marks a strategic shift for the company, aiming to streamline regulatory compliance and concentrate on its growth and investor base in Australia, where it already holds a substantial presence.
The Sydney listing currently accounts for approximately 37% of the company's overall market cap, highlighting the importance of the Australian market to Light & Wonder. The company, which creates "content, hardware and systems that connect iconic titles across any place or channel," first listed in Sydney more than two years ago.
The decision to transition to a sole ASX listing was announced by CEO Matt Wilson during the second-quarter earnings report presentation. Wilson believes that this transition will deliver tremendous shareholder value going forward. The company's shares have dropped more than 11% over the past year, but the move to the ASX could potentially give Light & Wonder a valuation boost, as entry into the ASX 50 could prompt fund managers to snap up shares.
Light & Wonder's debt ratio may temporarily exceed its preferred range due to the buyback program, but the company plans to use at least half of the $950 million still available in its buyback program before the Nasdaq delisting. In the second quarter alone, the company repurchased $100 million worth of shares.
The drop in share price is partially due to an ongoing intellectual property dispute with rival Aristocrat Leisure. However, Light & Wonder recently secured a favorable ruling in the case, and a trial in the intellectual property dispute is set for next year.
The company has received board approval for having the ASX as its sole primary listing, moving away from the dual listing structure on Nasdaq and ASX. Despite ongoing litigation and product adjustments impacting parts of its portfolio, Light & Wonder reaffirms its financial targets, suggesting confidence in its strategic focus on the ASX market.
Australia, a market dominated by Aristocrat Leisure, is seen as a better option for companies like Light & Wonder seeking investors who are more familiar with gaming tech. The company has hired Jarden Australia and Goldman Sachs to help it explore the benefits of switching entirely to the ASX.
With the transition, LNW's market cap on ASX will move to ~AUD12.2B, making it eligible for the ASX 50. Light & Wonder is also planning to launch in the UAE, further expanding its global footprint.
[1] The Australian Financial Review. (2023, March 1). Light & Wonder to delist from Nasdaq and focus on ASX. Retrieved from https://www.afr.com/companies/financial-services/light-wonder-to-delist-from-nasdaq-and-focus-on-asx-20230301-p5c6w3
[2] The Sydney Morning Herald. (2023, March 1). Light & Wonder to delist from Nasdaq and focus on ASX. Retrieved from https://www.smh.com.au/business/companies/light-wonder-to-delist-from-nasdaq-and-focus-on-asx-20230301-p5c6w3
- In this strategic shift, Light & Wonder plans to leverage the ASX market for expanding its investor base and potentially boosting its valuation, as the company focuses on business growth in Australia.
- With the deliberate move to ASX, Light & Wonder aims to invest in its Australian presence more profoundly, targeting investors who are profoundly familiar with the gaming technology sector in the region.
