The IPO is expected to value the company behind 888.com, the world\’s largest internet casino, at over 700m, marking a substantial windfall for the two Israeli families that control 90 per cent of the firm.
Avi and Aharon Shaked own about 70 per cent while the Ben-Yitzhak family owns about 20 per cent of the casino company, which is estimated to generate annual profits of around 100m
“The company\’s valuation looks attractive. Clearly Cassava will list at a discount to its peers to attract initial investors and to reflect lower growth rates,” said Greg Feehely, an analyst at Altium Securities.
“Casinos, which make up about two-thirds of Cassava\’s business, are expected to grow at a slower rate than poker operations run by such companies as PartyGaming,” he added.
HSBC will be the sole bookrunner of the sale, which is being managed by Bridgewell, Panmure Gordon Investments and Numis Securities.