Spanish renowned gambling operator Cirsa has officially announced its plans to go public on the stock exchanges in Barcelona, Bilbao, Madrid, and Valencia, aiming to raise approximately 460 million euros (about 428 million US dollars) through an Initial Public Offering (IPO).
The IPO includes the issuance of new shares worth 400 million euros to support the company's expansion strategy and reduce debt, as well as a secondary sale of 60 million euros provided by the parent company LHMC Midco, intended to cover taxes and related expenses during the management equity restructuring process.
Cirsa currently operates in Spain, Italy, Morocco, and several Latin American countries. The company plans to list on the Automated Quotation System (ATS), but the final decision will depend on market conditions and the regulatory approval of the Spanish National Securities Market Commission (CNMV).
The transaction also features a standard greenshoe option, allowing joint bookrunners to issue additional shares to meet market demand.
According to Cirsa's latest financial report, the company's revenue has grown by 12.5% year-over-year, reaching 576.7 million euros. It is estimated that about 375 million euros of the funds raised from this IPO will be used to accelerate business growth and repay existing debt, with Cirsa's net leverage ratio expected to drop to 2.7 times EBITDA after the listing.
It is important to note that the secondary market sale will not directly benefit current or former executives, except for tax and expense compensation; management will still retain equity in Cirsa after the listing.
Cirsa's CEO Antonio Hostench stated: "We have always focused on integrating physical and digital gambling businesses, and this listing plan is another milestone in the company's development history, providing financial support for future projects and further consolidating our leadership position in the global gambling industry."
