Online Casino Style: News - Betfair Moves Toward Flotation

10/14/2010		Online Casino Style - News: Betfair Moves Towards Flotation
Home History Games News Dictionary		An important update has become available this week from the online gambling company Betfair, as they published to the press their prospectus. The report lays out in a transparent manner exactly the number of shares to be made available for public purchase, and at what price, making a major step forward to their actual release and flotation of ten percent of the company. According to a report by the Financial Sunday Express, internet gambling experts and potential investors are closely watching the developments for the same thing: watching for signs that the company might overvalue the shares. They might be short-changed on that expectation, however, with initial reports from the Betfair prospectus putting the value at around £1.2 billion, a significant amount, though smaller than what many had predicted, at £1.5 billion. It seems that the internet gambling company may have been forced to drop the prices of the shares by their existing shareholder companys, as bank interests expressed fears in regards to over-valuation as well. Betfair currently owes debts to a range of investment banks including Goldman Sachs, Morgan Stanley, Barclays Capital and Numis. Nonetheless, the concerns remain with some of the investors admitting to the Financial Sunday that they were scared that the Betfair flotation would have similar results as Ocado’s, which dropped their proposal from a clean billion down to £800 million when they overvalued themselves. "The Betfair story is quite good: people are comfortable with it,” one leader said, on the condition of anonymity. “The danger is that it gets an exaggerated valuation. Some people have been put off the IPO as they believe Goldman will overvalue it."

10/14/2010

Online Casino Style - News:
Betfair Moves Towards Flotation

An important update has become available this week from the online gambling company Betfair, as they published to the press their prospectus. The report lays out in a transparent manner exactly the number of shares to be made available for public purchase, and at what price, making a major step forward to their actual release and flotation of ten percent of the company.

According to a report by the Financial Sunday Express, internet gambling experts and potential investors are closely watching the developments for the same thing: watching for signs that the company might overvalue the shares. They might be short-changed on that expectation, however, with initial reports from the Betfair prospectus putting the value at around £1.2 billion, a significant amount, though smaller than what many had predicted, at £1.5 billion.

It seems that the internet gambling company may have been forced to drop the prices of the shares by their existing shareholder companys, as bank interests expressed fears in regards to over-valuation as well. Betfair currently owes debts to a range of investment banks including Goldman Sachs, Morgan Stanley, Barclays Capital and Numis.

Nonetheless, the concerns remain with some of the investors admitting to the Financial Sunday that they were scared that the Betfair flotation would have similar results as Ocado’s, which dropped their proposal from a clean billion down to £800 million when they overvalued themselves. "The Betfair story is quite good: people are comfortable with it,” one leader said, on the condition of anonymity. “The danger is that it gets an exaggerated valuation. Some people have been put off the IPO as they believe Goldman will overvalue it."