Italian gambling firm Lottomatica recently completed its initial public offering (IPO) on the Milan Stock Exchange. This article provides an overview of the IPO, the company’s financial performance, and its future prospects. Despite pricing its shares at the lower end of the target range, Lottomatica aims to achieve substantial growth and profitability in the coming years.
IPO Details:
Lottomatica priced its shares at €9 ($9.93), which is at the bottom of its target range. With this pricing, the company debuted on the Milan Stock Exchange on 3 May with a market capitalization of €2.27 billion. The IPO aimed to raise €600 million, including €425 million of newly issued stock and €175 million of shares sold by existing investor Gamma Topco.
Lottomatica’s Business Operations:
Lottomatica is an Italian gambling provider that offers online and in-store sports betting and other event wagering services across Italy. The company’s revenue growth in 2022 led to profitability, reporting a net profit of €79.3 million during its first full year of trading since the acquisition.
Financial Outlook:
Lottomatica has set ambitious targets, aiming to achieve a mid-point core profit of €560 million in the current year. This indicates the company’s confidence in its ability to capitalize on the growing gambling market in Italy and improve its financial performance.
Ownership and Free Float:
Private equity firm Apollo Global Management owns Lottomatica. The IPO included a free float of 26.5% of the share capital, which could potentially increase to 30.5%. This structure allows for increased market participation and liquidity.
Future Growth Potential:
Lottomatica’s IPO provides an opportunity for the company to expand its operations and invest in technological advancements. By leveraging its established presence in the Italian gambling market, Lottomatica can enhance its online platform, improve customer experience, and capture a larger market share.
Goldman Sachs Partnership:
As part of the IPO, Gamma Topco granted Goldman Sachs an option to purchase nearly 20 million additional shares, approximately 15% of the total shares on offer. This strategic partnership further solidifies Lottomatica’s position and opens doors for potential future collaborations.
Lottomatica’s IPO marks an important milestone for the Italian gambling firm as it seeks to capitalize on the growing demand for online and in-store wagering services. Despite pricing its shares at the lower end of the target range, Lottomatica aims to deliver strong financial performance and achieve sustained profitability in the coming years. With its established market presence and strategic partnerships, the company is well-positioned to seize opportunities in the dynamic gambling industry.