“There is a significant risk that criminal or civil judgements may be sought against the group of directors,” PartyGaming said in its prospectus for the initial public offering in London.
The regulatory risk in the US increased anxiety among investors, with some reporting to be reconsidering whether to back the online poker company later this month.
Some investment institutions believe PartyGaming\’s shares will have to be priced lower to get the floatation away.
“We are very sceptical about it. There is the whole risk profile, although it has been priced at a discount to others in the sector,” said a fund manager.
PartyGaming\’s shares price range had slipped to 110-118p at spread-betting company IG Index and to 112-115p at Cantor.