Following Empire Online Ltd.’s (AIM:EOL) successful IPO, Israeli online gambling company 888 Holding plc also plans to float shares on the London Stock Exchange (LSE). 888 published its prospectus for the issue today.
888 Holdings plans to hold the IPO at ₤1.62-2.12 per share, reflecting a market cap of ₤546.1-714.6 million ($1-1.3 billion). Earlier estimates of the company value for the issue were $1.3-1.5 billion. Presumably, the latest news from the online gaming industry (the financial report by PartyGaming (LSE:PRTY)) lowered 888 Holdings’ value for the IPO.
The announcement of the final issue price and the tender on the LSE are scheduled for September 29, and trading in the shares will begin on October 4. HSBC is the sole bookrunner.
888 Holdings plans to issue 84.4 million shares, worth ₤136.7-179 million, reflecting 25% of the company’s share capital.
888 Holdings today published financial results for the first time. Net gaming revenue in the casino segment rose 14.2% in the first half of 2005, compared with the first half of 2004. The company’s directors are confident of continued growth in the casino business.
888 Holdings’ net gaming revenue from poker rose 226% in the first half of 2005, compared with the first half of 2004. Net gaming revenue from both casino and poker in July was $23.3 million, 12.5% more than the $20.6 million monthly average in the first half of the year.
888 Holdings also stated, “The directors intend to adopt a dividend policy, which will reflect the long-term earnings and cash flow potential… Following the offer, the directors expect that 888 will adopt an annual dividend payment ratio of approximately 50% of the group’s net profit.”
888 Holdings’ IPO has suffered from PartyGamings’ results for the first half of the year, which were below market forecasts. PartyGamings’ share subsequently plummeted 33% in a single session, a loss of $4 billion in market cap.
Published by Globes [online], Israel business news - www.globes.co.il - on September 15, 2005