Betfair will sell stock to top investors
BETFAIR expects its £1.5bn IPO to be fully subscribed by “high quality” institutional investors, according to sources close to the firm.
Bosses began a two-week roadshow yesterday to convince investors to take up the share offer.
The source told City PM the firm is confident the 10 per cent stake up for grabs will be taken up by top class investors such as BlackRock and Invesco.
The world’s largest betting exchange announced a price range of between £11 and £14 a share yesterday, giving it an equity value of between £1.16bn and £1.48bn.
The firm does not plan on raising new capital, with the stock available being sold by current shareholders. Founders Ed Wray and Andrew Black both stand to make a paper windfall of £17m from the sale.
Black confirmed this week at the firm’s annual meeting he will step down as non-executive director.
He will maintain an interest as a shareholder but leave the day to day running to Wray.