£100 Million IPO from Playtech Ltd

By Debra SaundersGoogle

Playtech Limited, the massive gaming software development company, announced last week that they are seeking to raise £100 Million in an initial public offering of stock.  In order to attract investors, Playtech is offering a dividend of up to 40% of annual profits.  The shares are to be sold at a 2.5% discount of the current share price.  Playtech will be placing 46,511,627 shares at 215 pence per share.

Considering the current momentum in the world of online gambling, many financial analysts say that this is a smart move for the veteran gaming software company.  Playtech needs the extra cash in order to cement its position as a global leader in online gaming software.

The largest shareholder is Brickington, the investment company headed by Playtech founder Teddy Sagi.  They currently hold 40.3% of Playtech’s shares and have underwritten the entire IPO.  Sagi has positioned himself to attain ownership of just less than 50% of Playtech’s shares.

Playtech is planning on using the capitol in order to purchase some other companies.  Playtech recently bought Mobenga, a company that specializes in mobile platforms for online gaming.  Expectations are that Playtech will spend roughly 40 million pounds on acquisitions in order to reinforce their development capabilities and secure their share of the global market.

Playtech’s future moves are all dependent on the success of the IPO.  Though Brickington has underwritten it entirely, that doesn’t mean they will be ready to jump at the prospect of taking on all the risk involved with £40 million worth of acquisitions.  However, considering the current trends in the online gaming industry, Playtech has no reason to fear that the shares won’t be bought up by eager investors. 

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