Gaming technology company Light & Wonder has announced that it will officially delist from the NASDAQ Stock Exchange on November 13, 2024, and transfer its primary listing location to the Australian Securities Exchange (ASX). NASDAQ is expected to suspend trading of its common stock after the market closes on November 12, with the delisting process taking effect the following day. The company first proposed the transfer plan in February and August this year, stating that this move aligns with the group's long-term strategic focus, aiming to consolidate trading liquidity to the Australian market, which has a deep understanding of the gaming industry. Since its secondary listing on the ASX in May 2023, the platform's trading volume has accounted for 37% of the company's total capital, and the market value is expected to significantly increase after the transfer, possibly entering the ASX 50 index.
Delisting Arrangements and Schedule
Light & Wonder has officially confirmed that it will delist from the NASDAQ Stock Exchange on November 13, 2024. NASDAQ is expected to suspend trading of the company's common stock after the market closes on November 12, with the delisting process effective the following day. The company submitted a delisting notice to NASDAQ in October and filed the relevant forms with the U.S. Securities and Exchange Commission (SEC).
This delisting is part of the company's plan to transfer its main listing location to the Australian Securities Exchange (ASX).
Strategic Focus and Reasons for the Transfer
The company states that delisting from NASDAQ and listing on the ASX aligns with its overall strategic focus, aiming to align the capital market layout with long-term growth plans and shareholder base. Light & Wonder hopes to consolidate trading liquidity to the ASX, believing that this market has better depth and liquidity and a deeper understanding of the gaming industry.
This move is expected to unlock greater shareholder value and support the company's future expansion.
ASX Listing Expectations and Impact
Since its secondary listing on the ASX in May 2023, the stocks traded on this exchange have accounted for about 37% of the company's total capital. The company expects that after transferring to the main board, the market value may increase from approximately 4.5 billion Australian dollars to 12.2 billion Australian dollars, and it is likely to be promoted from the ASX 100 index to the ASX 50 index constituents.
Joining the main index will enhance the company's market visibility and liquidity.
Stock Performance and Market Reaction
On the day the delisting announcement was released, October 23, Light & Wonder's closing stock price on NASDAQ fell by 0.68% to 75.85 USD. The market's overall reaction to the company's transfer plan has been stable, with investors focusing on its long-term performance and growth potential on the ASX.
The company will release its third-quarter results on November 5, at which time more details related to the transfer may be disclosed.
Industry Background and Decision Factors
As a significant enterprise in the gaming technology field, Light & Wonder believes that the ASX is more familiar with the characteristics of the gaming industry and can provide a more favorable market environment. The Australian securities market has a higher acceptance of gaming companies and more substantial liquidity support.
The decision to transfer has been evaluated over a long period, aiming to optimize the match between the listing platform and business model.
Legal and Compliance Procedures
The delisting process complies with the relevant regulations of NASDAQ and the SEC, and the company has submitted the required Form 25 and other documents. The transfer to the ASX listing also needs to meet the compliance requirements of the Australian securities regulatory authorities to ensure a smooth transition.
The company states that all procedures are conducted legally and in compliance, safeguarding shareholder rights.
Liquidity Consolidation and Trading Arrangements
After the transfer, the ASX will become the primary trading venue for the company's stocks, and existing NASDAQ investors will need to adjust their trading channels. The company expects that consolidating liquidity to a single market will enhance trading efficiency and reduce the complexity of cross-market transactions.
Investor relations management will be adjusted accordingly to adapt to the new exchange's rules.
Long-term Growth Plan Alignment
The delisting and transfer align with Light & Wonder's long-term business expansion strategy. The company focuses on gaming technology research and development and market expansion, and the ASX platform is expected to better support its financing needs and valuation enhancement.
The strategic adjustment reflects the company's emphasis on growth in the Asia-Pacific market.
Shareholder Communication and Subsequent Arrangements
The company commits to timely informing shareholders of the transfer progress and related arrangements, ensuring transparency of information. Investors holding NASDAQ stocks will receive specific guidance on share conversion and ASX trading.
Shareholders can continue to buy and sell company stocks through the new exchange, with their rights unaffected.
Future Outlook and Industry Impact
The transfer of Light & Wonder may prompt other gaming technology companies to reassess their listing locations. The ASX is expected to attract more international gaming enterprises to list, enhancing the representation of this industry in the Australian capital market.
This trend may change the financing and listing landscape of global gaming technology companies.
