All eyes are on Super Group (NYSE:SGHC) as it makes its debut on the public markets today. Super Group is a business combination between special purpose acquisition company (SPAC) Sports Entertainment Acquisition Corp. and Super Group, a holdings company that owns sports gambling subsidiary Betway. Furthermore, Sports Entertainment entered into a definitive agreement with Super Group last year. The company now trades on the New York Stock Exchange under the ticker SGHC.
The business combination is expected to generate $202.4 million from Sports Entertainment trust proceeds, which reflects 45% of the publicly held shares that were not redeemed. Shareholders of Sports Entertainment voted to approve the business combination on Jan. 26. Super Group CEO Neal Menashe commented on the deal, saying:
“Now as a public company, we plan to continue to strengthen our brand among the worldwide online betting and gaming community by growing our customer base, expanding into new markets and developing strategic partnerships with major sports franchises.”
So, what else should investors know about SGHC stock? Let’s dive in.
SGHC Stock: 8 Things to Know as Super Group Begins Trading
- Super Group is also the parent company of Spin, a multi-brand online casino offering company. Combined, Spin and Betway employ over 3,500 employees in 17 countries and have other 2.5 million active users.
- In addition, Betway currently has gambling licenses in 25 jurisdictions, including in the U.S., Europe and Africa. Additionally, Betway has engaged in marketing by holding over 60 partnerships with sports leagues around the world, such as the NBA and the English Premier League.
- Competitors to Betway include DraftKings (NASDAQ:DKNG), BetMGM (NYSE:MGM) and Fanduel. Competition is steep, but on the bright side, Betway is profitable.
- Super Group utilizes a “proprietary marketing and data analytics engine” to provide a unique experience to each customer.
- Furthermore, Super Group’s business strategy is built around three core pillars: diverse offerings, global footprint and data.
- Last year, Super Group acquired Digital Gaming Corporation (DGC). DGC owns the exclusive rights to Betway in the U.S. and has already acquired several state gambling licenses.
- On top of that, Super Group hired former NFL executives John Collins and Eric Grubman to lead its U.S. expansion plans.
- For 2022, Super Group expects to post gaming revenue of $1.7 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of $420 million.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
