Gateway Files for a $100m New York IPO

By Ben Hamill - November 27 2018
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Gateway Files for a $100m New York IPO

Canadian gaming operator Gateway Casinos and Entertainment, which runs 26 local properties across the nation, reportedly filed with the SEC last week in a bid to raise up to $100 million in an initial public offering, or IPO.

The British Columbia-based firm was established back in 1992, and clocked in over $474 million in revenues for the 12 month period ended on September 30, 2018. The company is now planning to list itself on the New York Stock Exchange using the symbol [NYSE:GTWY] after filing confidentially on October 16 this year.

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Morgan Stanley Acts as Bookrunner

According to media reports on the matter, Morgan Stanley will be acting as the sole bookrunner for the intriguing deal. Unfortunately for the public, no pricing terms have yet been disclosed, although they might still surface sometime this year. The original announcement first appeared on IPO investment manager Renaissance Capital’s official website.

The Canadian company has set an initial placeholder of $100 million to indicate the size of the public offering. The amount of money that a company plans to raise during its first IPO filing is traditionally used to calculate its registration fees, while the final size of the offering could actually differ significantly from the original number provided.

Catalyst Fund is currently the largest shareholder in Gateway Casinos and Entertainment. The company has investments in a number of successful fintech firms, and holds around a 5% stake in the corporation at the present. Another notable stakeholder (according to a regulatory filing) is Olga Ilich, a local politician.

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Gateway Ends 5-Month Worker Strike

As mentioned above, Gateway operates 26 gambling properties across Alberta, Edmonton, British Columbia and Ontario, all of which have over 13,500 slot machines combined. Profits attributable to shareholders for the firm came to $156.2 million during the first three quarters of 2018, compared to a prior loss of $36.4 million the year before.

The gaming company has revealed that all shares in its IPO will be sold by shareholders, and it is not expecting to reap any of the net proceeds of this sale itself.

Earlier this year, Gateway was embroiled in controversy as workers at some of its largest land-based venues took to the picket lines for nearly 5 months. The workers teamed up with their union to demand wage increases and improved working conditions, and after denying them these requests for weeks, the company finally relented, ending the strike in mid-November with a more amenable deal.

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