The pre-listing publicity machine at Party Poker was hard at work
this week, with reports from analysts and wire services telling the
world that the top online poker site aims to price its flotation on
the London Stock Exchange by June 27.
The reports indicate that parent Party Gaming is tentatively planning
to list about 800 million ordinary shares (around 20 percent of its
capitalization) and an additional tranche known as a *greenshoe* of
about 15 percent depending on demand.
Analysts estimate the listing could value Party Gaming at about $10
billion (GBP 5.5 billion), and they expect the stock to qualify for
inclusion in blue-chip indexes compiled by FTSE and MSCI.
Further proof of the boom in Internet poker and London's position
as the listing centre for the industry was provided midweek by Empire
Online, which said it plans to list on London's junior AIM share market
on June 15 just before Party Gaming arrives.
Empire Online is expected to hit the market in the first two weeks
of June and the issue is expected to be in the $225-275 million range,
most of which will go directly into the pockets of the owners, especially
Lanir, the largest shareholder. Of this, the firm plans to raise $50
million, with the rest going to the shareholders in exchange for 20
percent of their holdings.
Empire Online customers include Casino On Net and Pacific Poker, both
of which belong to a duo of brothers: Shay and Ron Ben Yitzhak, and
Avi and Aharon Shaked. Lanir has been their business partner since 1998,
when they discovered together the tremendous potential of online gaming.
STOP PRESS: PartyGaming, the world's biggest online poker company,
has settled weeks of intense speculation by announcing plans to float
on the London Stock Exchange in what is likely to be the City's biggest
new listing for four years.
Based in Gibraltar, PartyGaming barely existed four years ago but riding
a wave of popularity in online poker playing, the operator of the PartyPoker
website is set to be valued at GBP 5 billion, bringing a major windfall
for executives, shareholders and employees.
With that sort of valuation, PartyGaming would immediately enter the
FTSE 100 share index. The flotation would be London's biggest since
insurer Friends Provident in 2001.