Gaming sites traffic generator XLMedia plc raised a gross £41.8 million ($69.4 million) in its IPO on London’s Alternative Investment Market (AIM) on Monday. The amount includes £9 million ($14.9 million) in an offer to sell by shareholders, and £32.8 million ($54.5 million) in an issue of new shares by the company. The offering was held at a value of £92.9 million ($154.2 million), after money. Trading in the share will begin on Friday, March 21 at £0.49 per share.
XLMedia had expected to raise far less, but demand for the offering was strong. The company says that it plans to invest in and develop its position in Scandinavia and to expand operations to countries, with an initial focus on the US, where its directors believe there are significant opportunities.
XLMedia was founded in 2008 to generate traffic to online gaming sites, such as 888 Holding plc (LSE:888). It basically markets the sites to their customers, and collects a commission from the site for bringing new customers. At that point, it is up to the site operator to turn the new customer into an active gambler. It already generates user traffic for more than 150 gaming sites, including Scandinavian sites Betsson AB (OMX: BETSB), Mr. Green & Co. AB (OMX: MRG), and Vera & John; British sites Ladbrokes plc (LSE: LAD), Bwin.party Digital Entertainment plc (LSE: BPTY), Bet365.com, and William Hill plc (LSE: WHM), and Israel's 888. The company sold its Turkish business in October 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014