Innova Gaming shares begin trading in Toronto after Amaya spin-off6th May 2015 6:02 am GMT
Shares in Innova Gaming Group have begun trading on the Toronto Stock Exchange Tuesday following its successful spin-off from Amaya.
Innova was formed as part of Amaya’s recent decision to spin-off its lottery and gaming subsidiary Diamond Game Enterprises.
The successful IPO saw Innova issue and sell 3.75m shares from treasury, with Amaya selling a further 8.52m shares at a price of CAD$4.00 per share. This raised gross proceeds of $15m for Innova, with a further $34.1m raised for Amaya for total aggregate gross proceeds of $49.1m.
"We're extremely pleased to have completed our IPO," said Innova chairman and CEO Richard Weil. "This is an important milestone that we anticipate will help us accelerate our development of new and innovative products, games and technologies for the large government lottery and gaming industries."
The offering was made through a syndicate of underwriters led by Canaccord Genuity, and included Cantor Fitzgerald Canada, Cormark Securities, Desjardins Securities, Dundee Securities and Clarus Securities.
Amaya has granted the underwriters an option exercisable for a period of 30 days following the closing to purchase an additional 1.84m shares at a price of $4.00 per share to cover over-allotments and allow for market stabilisation purposes.
At closing, Amaya owns 8.18m shares or approximately 40 per cent of Innova's issued and outstanding shares. If the over-allotment option is exercised in full, Amaya’s retained interest will be reduced to 6.34m shares, or 31 per cent of the total share capital.
Innova, which trades under the symbol IGG, has offices in Ontario, Canada, California and Missouri.
Shares in Innova Gaming Group Inc. (TSX:IGG) closed at $3.52 per share in Toronto yesterday, having opened at $3.50.