Libera Gaming Operations Moves Forward with $5.2 Million IPO

Libera Gaming Operations plans to launch an initial public offering (IPO) aiming to raise $5.20 million during the week of December 1, 2024. The company intends to issue 1,300,000 shares at a price of $4.00 per share, according to a report by IPO Scoop.

Over the past year, Libera Gaming Operations has demonstrated strong financial performance, generating $52.52 million in revenue with a net income of $4.16 million. The company currently holds a market capitalization of $47.64 million. The underwriters for this IPO are D. Boral Capital, previously known as EF Hutton, and Sutter Securities.

Company Overview and Operations

Founded in May 1965, Libera Gaming Operations has established itself as a significant player in the pachinko industry in Japan. As of March 15, 2024, the company operates 11 pachinko gaming halls across the country. Pachinko, a popular recreational arcade game, allows players to win balls which can be exchanged for prizes. Notably, the pachinko industry in Japan is heavily regulated, and the activity is not classified as gambling due to the prize redemption system.

Libera Gaming Operations is among the top 10% of pachinko hall operators, a distinction it maintains amidst a total of 1,623 operators in Japan. According to a survey by the Yano Research Institute, there are only 161 operators managing more than ten pachinko halls.

For the fiscal years ending October 31, 2023 and 2022, the company reported total revenues of ¥4,874,215 thousand (approximately US$32.2 million) and ¥3,966,010 thousand (around US$26.2 million), respectively. The net income for these years was ¥557,802 thousand (about US$3.7 million) and ¥200,185 thousand (approximately US$1.3 million), respectively.

Real Estate Ventures and Future Growth

In addition to its gaming operations, Libera Gaming has ventured into real estate, focusing on redevelopment, property rental, and brokerage primarily in central Tokyo. This strategic move leverages the company’s extensive experience and network gained through its pachinko business. The firm aims to capitalize on rising demand for real estate in Tokyo, which is perceived to be more affordable compared to other major international cities.

During the fiscal year ending October 31, 2023, the company recorded ¥980,543 thousand (approximately US$6.5 million) from the sale of one property. In the previous fiscal year, it generated ¥3,705,626 thousand from the sale of two properties. Libera Gaming anticipates that ongoing interest in Tokyo’s real estate market will continue to attract investors, fostering growth in the sector.

As of October 31, 2023, the company had retained earnings of ¥10,375,305 thousand (around US$68.5 million) and total liabilities of ¥17,769,154 thousand (approximately US$117.3 million), reflecting a robust financial position as it prepares for its IPO.

Libera Gaming Operations is headquartered in Tokyo and employs 210 staff. The firm has expressed intentions to list its stock on the NASDAQ, as outlined in a Free Writing Prospectus dated September 18, 2024. As it approaches this significant milestone, the company’s dual focus on gaming and real estate positions it well for future growth and investor interest.