LeoVegas IPO puts market cap in excess of ?300m
Online casino firm to list a third of company shares on Stockholm's Nasdaq First North Premier on 17 March
LeoVegas is preparing for an IPO valuing the Swedish mobile gaming operator at more than ?320m, just four years after launch and despite posting a profit of ?0.5m last year.
The firm, which has grown revenues by 124% over the past 12 months, will float on Stockholm’s Nasdaq First North Premier market on 17 March with shares valued between SEK28-32 (3-3.5 cents).
Based on that price range, LeoVegas is offering shares worth in the region of SEK1m (between ?100-115m), or a third of the entire business.
The approximate market capitalisation of the company looks like being in excess of ?300m and as much as ?340m.
The operator has set itself the bullish target of reaching ?300m in net sales in 2018 with an EBITDA margin of around 15%, according to the prospectus.
LeoVegas co-founder Gustaf Hagman (pictured, left, with fellow founder and chairman Robin Ramm-Ericson) told eGaming Review this morning that the firm had secured around ?40m in investment from selected cornerstone investors ahead of the IPO.
“If you look at recent IPOs in the last year there has been a good level of interest for gaming companies so I think there is a great potential for us,” he said.
Having launched in 2012 LeoVegas has emerged as one of the leading mobile casino brands in Europe and now derives 65% of revenues from the Nordics and 22% from the UK. It had more than 100,000 depositing customers in the last quarter.
Full-year revenues for 2015 amounted to ?83m however Q4 revenues doubled compared to the same period in 2014 to ?26m, showing strong organic growth. Profits remain relatively low at around ?0.5m a quarter.
“We see the listing of LeoVegas primarily as a platform for continued solid growth and a natural the next step for the company,” Hagman told EGR ahead of an investment roadshow that will take in London, New York and Stockholm in the coming weeks.
“When you’re expanding into new, regulated markets it is extremely important to be transparent and being a public company gives you that.”
LeoVegas announced last month it will launch a sports betting brand this year, and Hagman said the product would be focused on mobile live betting.
“LeoVegas is all about delivering the greatest gaming experience and we are confident that we can bring the mobile live betting experience to the next level. It’s a great sports year with the Euros and the Olympics so it’s the right time to make this move,” he said.