Israel subsidiary Random Logic developed the software used by Cassava’s online gambling sites.
Anyone going to see a movie at Cinema City at Glilot Junction this afternoon could not have missed the billboard by Random Logic Ltd., a subsidiary of online gambling company Cassava Enterprises (Gibraltar) Ltd.. It turns out that Cassava convened its 300 employees to update them on the company’s expected IPO in London. Israel-registered Random Logic developed the software used by Cassava’s online gambling sites.
Sources inform ''Globes'' that Random Logic CEO Shai Ben Yitzhak, one of Cassava’s four founders, told employees yesterday that the IPO was likely before the end of the year, and that management had already launched the road show among investment houses. He also told employees in general terms how the IPO would be held, and mentioned possible potholes en route.
Ben Yitzhak said Cassava’s IPO had gained momentum from the success of other online gambling companies, such as PartyGaming (LSE:PRTY) and Empire Online Ltd. (AIM:EOL). PartyGaming held its IPO two months ago at a company value of $8.5 billion, and its market cap has since risen to $11.7 billion. Empire Online has risen 40% since its IPO to a market cap of $1.3 billion. Cassava’s IPO could make its Israeli founders billionaires.
Scottish daily “The Herald” reported today that Cassava was expected to issue 25% of its shares at company value of ₤800 million ($1.5 billion). The entire issue will reportedly consist of an offer to sell by the company’s founders.
Published by Globes [online], Israel business news - www.globes.co.il - on August 8, 2005