Zona de Azar Italy – IPO: Lottomatica of Italy Targets Valuation of up to $3 Billion

Italy.- 25th April 2023 www.zonadeazar.com Italy’s largest gambling group Lottomatica is seeking a valuation of up to 2.67 billion euros ($2.93 billion) as it prepares to list its shares in Milan, riding a market rebound after recent turmoil.

Lottomatica, one of the few European companies pressing on with listing plans after a crisis of confidence in the banking system rocked global markets, on Thursday said it would sell shares priced at between 9 and 11 euros each.

The offer will run from April 24 to April 27.

The group owned by U.S. fund Apollo Global Management (APO.N) said it would use part of the proceeds of up to 600 million euros from its initial public offering (IPO) to repay a 250 million euro loan from its owner.

A successful float could help pave the way for a much-awaited recovery in IPO activity, which all but ground to a halt last year amid soaring interest rates and economic uncertainty.

Furniture group Italian Design Brands said this week it also plans to list in Milan, and is currently sounding out investors to set a price range for the offering.

Lottomatica will be selling both existing shares and new ones to be issued under an up to 425 million euro capital increase.

An over-allotment option would yield a further 90 million euros if exercised.

If successful, the deal will cut Apollo’s stake to around 75%, which will be subject to a 180-day lockup.

Lottomatica generated revenue of 1.4 billion euros in 2022, with 22.8 billion of bets placed by more than 1 million online customers and through a franchising network of 18,000 outlets.

Barclays, Deutsche Bank, Goldman Sachs, JP Morgan and UniCredit are acting as joint global coordinators.

They are also joint bookrunners with Apollo Capital Solutions, Banca Akros, BNP Paribas and Mediobanca. Equita SIM is co-manager and Credit Suisse financial adviser. ($1 = 0.9127 euros)

Edited by: @MaiaDigital www.zonadeazar.com