Light & Wonder Considering Australia Stock Listing

Slot machine manufacturer Light & Wonder (NASDAQ: LNW) told investors Wednesday it’s considering a secondary listing of its equity on the Australian Securities Exchange (ASX).

That would be in addition to its current primary listing on the Nasdaq. Australia is one of Light & Wonder’s largest markets outside the US, and a Sydney listing could give the gaming company enhanced exposure to Australia’s institutional investors.

The ASX is a premium market with a long track record as a platform for global gaming companies and a deep and liquid pool of sophisticated investors and market participants who have a strong understanding of the gaming business,” said L&W Executive Chairman Jamie Odell in a statement.

The Las Vegas-based company said it will update investors when the evaluation process is finalized, though it didn’t reveal a related time line. It added that there are no guarantees that a secondary listing on the ASX will materialize.

Light & Wonder’s Deep Australia Ties

This isn’t the first time L&W has mulled an ASX listing. Nearly two years ago — then operating as Scientific Games — the company reportedly engaged Australian investment bank Jarden Australia to evaluate a potential secondary listing in that country.

L&W has other Aussie ties, as well. Odell is a well-respected Aussie gaming executive and previously ran Aristocrat — the world’s largest slot machine maker — for a decade. He’s also a part of Caledonia Investments, which previously purchased a $1 billion stake in Scientific Games from financier Ron Perelman.

“We believe they (Australian investors) will appreciate the value and long-term potential of L&W’s broad international business and strategy. We look forward to engaging with the market and our current shareholders on a potential secondary listing,” added Odell in Wednesday’s statement.

Light & Wonder Could Be Interesting to Aussie Investors

Based on Wednesday’s closing market capitalization of $5.13 billion, Light & Wonder is classified as a mid-cap stock, excluding it from some popular, large-cap-heavy domestic equity gauges. Based on that market value, it would be the 90^th-largest company trading on the ASX.

Additionally, Australian market participants have an affinity for US stocks. As just one example of that trend, the country’s largest exchange-traded fund (ETF) is linked to the S&P 500, not a benchmark of Aussie equities.