The group and selling shareholders are offering 7,500,000 ordinary shares in an initial public offering (IPO) to raise funds. The underwriters of the offering will also have the option to purchase up to an additional 1,125,000 ordinary shares from the selling shareholders. The estimated IPO price is between $11.00 and $13.00 per ordinary share, with a midpoint of $12.00.
The group has applied to list its shares on the Nasdaq Stock Market under the ticker symbol “GAMB.” Jefferies LLC is the lead book-running manager and representative of the underwriters for the offering, while Stifel, Nicolaus & Company and Truist Securities are also serving as book-running managers.
Gambling.com, which operates multiple websites in various languages and markets, intends to use the net proceeds from the offering for general corporate purposes such as working capital, operating expenses, capital expenditures, strategic investments, and acquisitions. The group does not foresee distributing any dividends to shareholders in the near future, opting to retain earnings for business expansion.
In recent years, the group has experienced growth in its revenue and financial performance. The revenue for the financial year 2020 was $28.0m, showing an increase from $19.3m in 2019. Sales and marketing expenses decreased from $10.9m in 2019 to $8.1m in 2020.
General and administrative expenses increased from $4.2m to $6.0m, while technology expenses remained consistent. As a result, the group achieved an operating profit of $11.1m in 2020, a significant improvement from $1.4m. The adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) rose from $3.7m in 2019 to $14.6m in 2020.
Finance expenses decreased from $2.5m to $2.1m, and financial income increased from $140,000 to $303,000. This led to an income before tax of $10.8m in 2020, compared to a loss before tax of $1.0m in 2019. After accounting for tax charges of $872,000 in 2019, the group recorded a net loss of $1.9m. However, in 2020, due to an income tax credit of $4.4m, the group achieved a net income of $15.2m.
