Betfair Considers Risky Stock Flotation
August 24, 2009 (CAP Newswire) — As the United States looks more and more likely to abolish its ban on online gambling in the coming months, offshore gaming companies are carefully considering the timing of ambitious financial moves in ancticipation of this dramatic market change.
Some sources are indicating that Betfair may be the first such company to test the stock market. The company is said to be considering a flotation, or initial stock offering, which would be the first step in an ambitious industry acquisition plan.
According to the U.K.’s Telegraph newspaper, this £1.5 billion flotation would represent a risk for Betfair. Many companies have been considering submitting a flotation, “but have been told they could struggle to find support and need a ‘heavyweight’ stock to lead the way.” Betfair could be that “heavyweight” stock needed for success; it could just as easily suffer if the timing is wrong.
“The steady improvement in the market has encouraged Betfair and others to look more closely at flotation,” the article states. “Investment bankers, starved of business, are running the rule over a number of companies regarded as ripe for flotation but with some leading commentators questioning the depth of confidence behind the recovery there is little enthusiasm for starting a rush to market.
“Betfair is planning extensive talks with advisers before making firm decisions on the timing of any move to raise fresh capital for a business, which has so far shrugged off recession and has changed the face of gaming in Britain.”