Betfair, the online betting company, has confirmed it will seek a listing on the London Stock Exchange as it targets further overseas expansion.
In a statement, the firm says a flotation will help it develop its international operations by improving its reputation and making it more transparent. It adds that an IPO will also help it react to consolidation in the betting world.
Betfair does not need to raise any new capital, however, so the IPO will not contain an issue of new shares.
‘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,’ comments Edward Wray, chairman of Betfair, in announcing the IPO.
The widely expected move is also an opportunity for existing shareholders to cash in on their initial investments. So far, major shareholders have indicated they will sell shares totaling at least 10 percent of the company at the time of the flotation.
Investor and analyst questions for the IPO are being handled by Mark Brooker, a former director at Morgan Stanley, who was brought in by Betfair earlier this year and is currently head of corporate development.
Goldman Sachs and Morgan Stanley are acting as joint bookrunners on the offering, with Barclays Capital and Numis Securities as co-managers.
Launched in 2000, UK-based Betfair is estimated to be worth around £1.5 bn ($2.3 bn).
