32Red.com Jump on the Flotation Bandwaggon
32Red.com will raise about £25m in new capital next month when it becomes the latest internet betting company to float in London.
32Red.com is set to be worth £100m. In contrast to some other recent floats in the sector - most notably PartyGaming, whose four founders pocketed the entire proceeds of the float and cashed in on almost £1bn - none of the shareholders will sell any shares.
Mr Ware, who quit his job as head of Ladbrokes' international division in 2000 to set up 32Red.com, has a 36 per cent share in the business but is not intending to sell down his stake. 'The float is about raising money to invest in the business and our growth plans, and not about raising money for shareholders,' he said.
The company is on course to see its profits treble over the next 12 months, rising from about £2m this year to £6m in 2006, reaching £12m by 2007.
'We have come to the point where we can carry on growing organically or we can try to accelerate things. We decided we wanted to get out there and float,' Mr Ware said.
Investor roadshows for the float will begin in the next two weeks, with the issue of new shares expected early next month.
OnlineCasinoNews.com - 2005-08-23 10:52:56