Blackstone's Cirsa aiming for $2.95 billion valuation milestone through initial public offering (IPO)
Cirsa, a Blackstone-owned gambling company with roots in Terrassa, Spain, has announced plans for an Initial Public Offering (IPO) in the country. The move is aimed at boosting the company's valuation and raising capital for growth, as it seeks to further expand and consolidate its strong market presence.
Founded in 1978, Cirsa has grown into a major international gaming platform, currently operating 451 casinos and gaming halls across 11 countries. The company holds market-leading positions in Spain, Latin America, Morocco, and Italy, and has recently expanded into Peru and Portugal.
The IPO, which is being managed by BBVA, Jefferies, Mediobanca, Societe Generale, and UBS, is expected to value Cirsa at approximately €2.5 billion (~$2.95 billion). The offering will consist of 26,666,667 newly-issued shares, with an initial offering of €400 million worth of shares. The price per share is set at €15.00.
If approved by the Spanish National Securities Market Commission (CNMV), the IPO is expected to launch in 2023. The offering may also include an additional €68 million worth of shares through a green-shoe option, representing an additional potential offering of shares.
The capital raised from the IPO will primarily be used to accelerate Cirsa’s growth and strengthen its capital structure by reducing debt leverage. The funds will support further expansion and consolidation of the company's strong market presence in various international markets, including Spain, Italy, Morocco, Puerto Rico, Portugal, and Latin America.
Reuters has reported on the IPO, adding to the anticipation surrounding this significant move for Cirsa. The company's growth strategy through the IPO focuses on raising capital to fuel expansion and improve financial strength under Blackstone’s ownership.
Sources: [1] Cirsa. (2022). Cirsa Announces Initial Public Offering in Spain. Retrieved from https://www.cirsa.com/en/news/cirsa-announces-initial-public-offering-in-spain [2] Reuters. (2022). Cirsa to raise €400m in IPO, valuing Spanish gambling firm at €2.5bn. Retrieved from https://www.reuters.com/business/cirsa-to-raise-400m-ipo-valuing-spanish-gambling-firm-2-5bn-2022-03-29/ [3] Cirsa. (n.d.). About Us. Retrieved from https://www.cirsa.com/en/about-us [4] Cirsa. (2022). Cirsa Announces Initial Public Offering in Spain. Retrieved from https://www.cirsa.com/en/news/cirsa-announces-initial-public-offering-in-spain [5] Cirsa. (n.d.). History. Retrieved from https://www.cirsa.com/en/about-us/history
Cirsa's Initial Public Offering (IPO) aims to boost its finance, with the raising of €400 million, allowing the gambling company to strengthen its capital structure, reduce debt leverage, and invest in further expansion and consolidation of its market presence in various international business sectors, including Spain, Italy, Morocco, Puerto Rico, Portugal, and Latin America. The growth strategy of Cirsa through this IPO focuses on improving its financial strength under Blackstone’s ownership.
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