Lottomatica, the Italian gambling company backed by Apollo Global Management Inc., is looking to raise €425 million ($467 million) of fresh capital in a Milan initial public offering this year, injecting life into Europe’s moribund equity capital market.
(Bloomberg) — Lottomatica, the Italian gambling company backed by Apollo Global Management Inc., is looking to raise €425 million ($467 million) of fresh capital in a Milan initial public offering this year, injecting life into Europe’s moribund equity capital market.
The offering will also include an as-yet undisclosed sell-down by existing shareholders. The company is seeking a valuation of around $5 billion including debt, Bloomberg News reported in January.
Europe’s IPO market effectively shut last year as rising interest rates and heightened inflation pushed investors into risk-off mode. Some companies are now betting that pent-up demand for listings will help them get IPOs away in the months ahead.
Lottomatica operates in Italy’s regulated gaming market and is active in the online, sports betting and slot machine segments.
Sisal SpA, Italy’s oldest betting company, also took a stab at listing on the Milan exchange before being bought by Flutter Entertainment Plc in a £1.6 billion ($2 billion) deal agreed in 2021.
Barclays Plc, Deutsche Bank AG, Goldman Sachs Group Inc, JPMorgan Chase & Co and UniCredit SpA are joint global coordinators, while Apollo Capital Solutions, Banca Akros SpA, BNP Paribas SA and Mediobanca are joint bookrunners. Equita SIM is co-manager and Credit Suisse Group AG is financial adviser.
Lottomatica also said it received commitments from banks including some of the underwriters for an up to €1.1 billion bridge loan facility aimed, among others, at refinancing senior secured notes due 2025. The company also said it will use proceeds raised in the IPO to pay down debt.
–With assistance from Antonio Vanuzzo.
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