The parent company of 888.com and Pacific Poker may be valued at over 700 million when it lists its shares in London at the end of the month.
The company previously known as Cassava Enterprises will not sell any new shares, but existing shareholders are expected to turn a quarter of the company into cash, implying an offer size of at least 175 million.
“Today\’s announcement marks an important step in our goal to become the market leader in the global online gaming entertainment industry and will enable us to increase further our brand profile, recognition and credibility,” said Chief Executive John Anderson.
The company may use its public status to fund acquisitions in the sector, said Anderson, without giving details.
“The online gaming industry will consolidate from more than 1,000 global players to less than 100 over the next five to six years,” he added.
Anderson plans to concentrate more on online blackjack and roulette, which he believes still have several years of large growth, and to reduce the company\’s reliance on the US, which accounts for about 55 per cent of sales, to concentrate on Europe and the Far East.
“No one country should account for more than half of our sales,” he said.
“We have got it down to just over 50 per cent and we want to expand in France, Spain and Germany. We have already done well in Denmark and Sweden.”
“Only 5 per cent of the global gaming market is taken up by online gaming so there is huge potential there.”
888 Holdings revealed financial details for the first time with a 2004 operating profit of $42.8m from revenues of $177.9m.
The firm also reported a 30 per cent gain in first-half operating profit to $24.5 million, while revenues rose 48 per cent to $123.7 million.
Ahead of the float, the Gibraltar-based group announced the appointment as non-executive chairman of Marie Stevens, who has previously been a member of the Gaming Board for Great Britain and acted as general counsel to Ladbrokes parent company, Hilton Group, for ten years.
Calculators
