Spanish gaming company, Cirsa, plans to offer shares in Spain and collect approximately €400 million through an Initial Public Offering (IPO).
Let's Talk about Cirsa's Upcoming IPO
(Approachable, straightforward, and informal tone)
Cirsa, a well-known gaming operator, is kicking things up a notch by announcing a public offering on Spanish stock exchanges. The main goal? Raising a whopping €400 million ($460.4 million) through the sale of new shares to fund acquisitions, debt reduction, and growth plans.
Fun Fact: Blackstone has been the owner of Cirsa since 2018.
You might be wondering, "Where will Cirsa's shares be listed?" Gabriella, your friendly assistant, has got you covered. The company is planning to list its shares on the Barcelona, Bilbao, Madrid, and Valencia exchanges. While the exact date for trading hasn't been finalized—dependent on market conditions and regulatory approval—CEO Antonio Hostench considers this venture a significant step forward for the company.
At the heart of this IPO, Antonio describes it as another parchment in the book of growth for Cirsa. "We are taking another defining step to continue writing another page in this extraordinary history of growth by announcing our intention to go public," Hostench said. Joaquim Agut, the executive chairman, echoed his sentiments, labeling the offering as a major moment for Cirsa.
To cover specific expenses—including taxes and restructuring costs associated with employee and management holdings—Cirsa intends to sell €60 million in secondary shares via LHMC Midco. It's important to note that management won't personally benefit financially from this transaction aside from the designated costs.
The IPO involves an over-allotment option led by Barclays Bank Ireland, Deutsche Bank, and Morgan Stanley Europe, serving as joint global coordinators.
Once the IPO goes live, Cirsa strategizes that its net debt to EBITDA ratio will be around 2.7x, eventually settling between 2.0x and 2.5x. Revenue projections for 2025 aim to reach between €2.28 billion and €2.33 billion, while online operations are expected to outperform 2024. On the other hand, land-based business revenue growth is predicted to surge in the mid-single-digit range.
The Q1 of this year was quite fruitful for Cirsa, with a net revenue of €576.7 million, representing a 12.5% increase compared to the previous year. Aside from Spain, the company operates in 11 countries, such as Mexico, Peru, Panama, and Portugal.
Cirsa's IPO will serve to facilitate its ongoing acquisition strategy. Since 2015, Cirsa has made over 130 acquisitions, including significant stakes in Apuesta Total in Peru and Casino Portugal.
Stay tuned for more updates as this exciting chapter unfolds for Cirsa and the gaming industry!
Note:- Cirsa aims to raise €400 million primarily to support its global growth strategy and to reduce its net debt. A secondary portion of the offering will be used by LHMC Midco to cover taxes and restructuring costs related to management holdings.- The IPO involves the issuance of €400 million in new shares (primary raise) and a €60 million secondary sale by LHMC Midco.- After the IPO, Cirsa expects to lower its net debt to EBITDA ratio to around 2.7x, eventually achieving a ratio between 2.0x and 2.5x.- The IPO is expected to be listed on the Automated Quotation System, pending market conditions and regulatory approval by Spain's Securities Market Commission.- The offering had initially been targeted for April 2025 but was postponed due to global market instability and is now moving forward with improving market conditions in 2025.
1. With the IPO, Cirsa is aiming to raise €400 million, not only for acquisitions but also to reduce debt and accelerate their growth plans in the business and investing sphere.
2. As Cirsa goes public, it will list its shares on the Barcelona, Bilbao, Madrid, and Valencia exchanges, providing an exciting opportunity for investors interested in the growing finance world of the gaming sector.
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