Betfair, the world’s largest online sports betting group which opened its international headquarters in St Venera in 2006, on Tuesday announced plans to list on the London Stock Exchange.
The firm, which holds betting licences in Malta, the UK, Italy, the US and in Australia through a joint venture, is expected to be valued at around £1.5 billion.
Betfair did not intend to issue any new shares as part of the initial public offering.
Chairman Edward Wray and non-executive director Andrew Black, both co-founders, have indicated they intend to sell around 10 per cent of their stake in the company through the offer, including over-allotment shares.
Betfair’s shareholder base includes a group of 14 major investors holding a 75 per cent stake of the company’s fully diluted share capital. Around 600 shareholders who hold the remainder will also be given the opportunity to sell stock.
Mr Wray described the IPO plans as a landmark in the firm’s history, saying: “Becoming a publicly listed company will provide Betfair with the heightened profile and enhanced transparency that will help us cement our long-term relationships with customers, regulators and business partners around the world.”
The directors said the admission to the London Stock Exchange, which is expected to earn Betfair a place in the FTSE 250 Index, will enable the company to grow more rapidly.
They said the listing could also provide Betfair with the necessary flexibility to react to the constantly developing online betting and gaming industry. The companys new status would contribute to incentivising and retaining key management and staff, and give existing shareholders more liquidity.
On Tuesday, Betfair announced revenue grew by 13 per cent to £340.9 million with adjusted earnings before interest, tax, depreciation and amortisation of £53.5 million. As at April 30, Betfair had £150.9 million in cash and no debt.
Established in 1999, Betfair pioneered the betting exchange concept which allows punters to set their own odds and bet against each other. Its portfolio includes other sports betting products, casino games and poker. It takes a commission on the net winnings of a customer in a given market of between two and five per cent. Betfair.com is offered in 17 languages and sees over seven billion page views a week.
The company processes more than five million transactions daily – more than all European stock exchanges combined. Practically all transactions are completed in under a second. Betfair has three million registered customers.
Betfair owns a 73.5 per cent holding in LMAX, which had developed an exchange platform for online retail financial trading, an evolution from its exchange technology. Originally established by Betfair in 2007, LMAX has invested significantly in developing its own exchange and a launch is expected before the end of the year.
Betfair also owns Betfair US, which includes TVG, a licensed US horse racing wagering and television broadcasting business, and a development office in San Francisco. Betfair Australia is the result of a 50:50 joint venture.
Employing more than 2,000 people worldwide, Betfair is the official betting partner of Manchester United and Barcelona football clubs and of Ascot Racecourse.