Betfair IPO valued at £1.4 billion
Offer priced at 1,300 pence per share
By CFOWorld.co.uk | CFO UK | Published 15:32, 22 October 10
Betfair’s initial public offering valued the world’s largest online betting exchange at £1.39 billion pounds on Friday, netting its owners around £211 million.
The shares will officially begin trading on the London Stock Exchange’s official list on 27 October, but are already conditionally being traded.
Andrew Black, a former professional gambler who founded the company 10 years ago with former JP Morgan trader Edward Wray, is in line for £18.9 million if an overallotment option is exercised in full. Wray will receive up to £16.6 million.
Shares in Betfair, whose offer comes at a time of resurgence in public offerings as European equity markets trade around six-month highs, were quoted at 1,542 pence at midday, a premium of close to 19 percent on the IPO price.
Black and Wray retain 10.2 percent and 10.7 percent stakes respectively.
Betfair allows customers to place bets or take bets in the role traditionally played by a bookmaker. It matches millions of bets a day on a variety of sports and other events.
Betfair said it had priced the offer at 1,300 pence per share, in the top half of its initial guidance of 1,100-1,400 pence.
David Yu, Betfair’s chief executive officer of, said: "We believe we have many opportunities to grow our leading position in the online sports betting and gaming market and we are extremely pleased that new investors share our enthusiasm for the future of the business."
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