Lottomatica, an Italian sports betting and casino operator, is allegedly considering a Milan initial public offering. As reported by Bloomberg, anonymous sources claim that the company’s IPO may raise as much as $1 billion.
Lottomatica May Earn $1B Through Its IPO
According to the reports, Lottomatica’s IPO may become a reality in 2023. Going public is expected to bring significant benefits to the company and provide it with over a billion dollars in funding.
As a result, Lottomatica’s bonds skyrocketed following the news. Although the report is yet to be confirmed by Lottomatica or Apollo Global Management, its ownership group, it had an immediate effect on the operator’s finance.
Markets saw Lottomatica’s €575 million ($624 million, current conversion rates) bonds due July 2025 increase by 1.6 cents on the euro to 97.6 cents. This is notably the highest figure recorded by the operator since April 2022.
The Operator Would Carefully Evaluate the Market Conditions
The sources claim that Lottomatica is currently working with notable banking entities, including UniCredit SpA, to evaluate the IPO plans. As outlined in the report, Lottomatica may go public as soon as the second quarter of the current year.
The specialists also noted that the gambling company is considering seeking a valuation of around $5 billion including debt. If the report is correct, it would mean that the company is ambitious on cementing its leading position through this IPO.
Bloomberg concluded that, according to its contacts, Lottomatica has not yet set the exact terms of its upcoming initial public offering. The sources believe that the operator would evaluate the market conditions before setting definite terms for its share sale.
The report comes from sources that preferred to remain anonymous, considering the private nature of the disclosed information. Bloomberg reached out to Lottomatica, Apollo Global Management and UniCredit SpA for comment but none of the entities agreed to provide a statement on the matter.
Lottomatica May Benefit from the Recent IPO Drought
Bloomberg noted that the IPO market in Europe has been down since 2022 when bloated interest rates and increased inflation forced investors to refrain from taking unnecessary risks. Amid this IPO drought, many companies hope that the pent-up demand for listings would help them go public in 2023.
As an Italian company, Lottomatica is dependent on the European market and must consider the various factors affecting it. It is likely that it would try to benefit from the demand for listings following the period of low IPO activity.
The IPO report comes two months after Lottomatica published its results for the year-to-date period ended September 30. The biggest Italian gambling operator reported that it had earned over a billion dollars during that period, representing a dramatic year-on-year increase.
Earlier that same month, Lottomatica joined forces with the tech specialist Playtech, inking and Italy-oriented iPoker agreement.