Cirsa Plans to Sell More Than 34 Million Shares in IPO with a Market Valuation of €2.5 Billion
Cirsa, the gaming company that has seen its EBITDA grow in 67 consecutive quarters (except for the period affected by the COVID-19 pandemic), is set to list on the Spanish stock exchange. The company, which has expanded into 11 international markets since being acquired by Blackstone in 2018, is aiming to raise €400 million through its Initial Public Offering (IPO).
As part of the primary offering, Cirsa will issue 26,666,667 new shares. In addition, a secondary sale, arranged through LHMC Midco, will offer another 3,552,113 shares, mostly to benefit past and current employees. LHMC Midco has been granted an over-allotment option to purchase up to 4,532,817 additional shares, should there be demand. If all shares are taken up, the total IPO size would rise to 34,751,597 shares, potentially valuing the secondary sale at around €53 million.
The funds raised from the IPO will primarily target increased acquisition activities to fuel expansion and market penetration internationally. Cirsa plans to invest more heavily in acquisitions looking ahead to 2025-2027, with the €400 million in fresh capital expected to support new deals. This strategic move is part of a broader plan to continue growing aggressively through mergers and acquisitions, following the company's recent acquisitions in Portugal and Peru.
In addition to acquisitions, Cirsa expects to generate organic cash flow estimated between €400 million and €500 million during the 2025-2027 period. This dual approach to growth is designed to ensure that the company maintains strong organic cash flow to support these investments and its financial health.
Cirsa's CEO, Antonio Hostench, views the IPO as an important milestone for future expansion. He believes that the financial resources provided by the IPO will enable the company to undertake new projects and consolidate its leadership in the gaming sector.
With this IPO, Cirsa continues its trajectory of growth and expansion, aiming to capitalise on the opportunities presented by the global gaming market while maintaining its financial stability and organic cash flow.
Cirsa's recent acquisition of additional funds through its Initial Public Offering (IPO) will primarily be allocated for increased acquisition activities to support international expansion and market penetration. The CEO, Antonio Hostench, views this IPO as a crucial step towards undertaking new projects and solidifying Cirsa's leadership in the gaming sector, with the aim of maintaining financial stability and organic cash flow.
