Catalyst-backed Gateway Casinos files for U.S. IPO: Reuters

Canadian gaming and entertainment operator Gateway Casinos & Entertainment Ltd on Tuesday filed for an initial public offering with the U.S. Securities and Exchange Commission to list its shares on the New York Stock Exchange under the symbol “GTWY”.

The company set a placeholder amount of US$100 million to indicate the size of the IPO.

The amount of money a company says it plans to raise in its first IPO filing is used to calculate registration fees. The final size of the IPO could be different.

Gateway’s biggest shareholder is Catalyst Capital Group, a Canadian private equity firm. Catalyst holds more than 5 percent in the company.

Olga Ilich, a Canadian politician, also holds a stake in the company, according to a regulatory filing.

The company has 26 gaming properties in British Colombia, Ontario and Alberta, with more than 13,500 slot machines.

It recorded total revenue of $484.3 million (US$367.51 million) in the first nine months of this year, up 42.9 percent from last year.

Profit attributable to shareholders was $156.2 million in the same period, compared to a loss of $36.4 million a year earlier.

Gateway said all shares in the IPO will be sold by shareholders and it does not expect to receive any of the net proceeds from the sale.

Morgan Stanley is the underwriter to the IPO.

Update: Founded in 1992, Vancouver-based Gateway was acquired in 2010 by Catalyst, which restructured the business, reduced debt, and injected new capital.

Catalyst Managing Director and Partner Gabriel de Alba is the company’s executive chairman.

(Reporting By Aparajita Saxena in Bengaluru; Editing by Arun Koyyur)

(This story has been edited by Kirk Falconer, editor of PE HUB Canada)