The world’s largest online sports betting company, Betfair, has announced plans to float the £1.5bn business at a cost of £14 per share.
Betfair was started in 2000 by former professional gambler Andrew Black, and former JP Morgan trader Ed Wray, who together own almost a quarter of the business, which was valued at around £300m at the proposed initial public offering (IPO) price.
Betfair allows gamblers to bet against each other on the internet and offers sports betting, poker and other games, while cutting out the traditional bookmaker.
According to reports, the next largest shareholder is Japanese bank Softbank, which acquired 23% of the company for £355m in 2006.
Furthermore, the online company has a group of 14 major investors who own about 75% of the business, and over 600 other shareholders who will also be able to sell shares, which will give Betfair a place in the FTSE 250.
The internet bookmaker published figures for the three months to the end of July, which showed its core business increased its revenues by 22% to £86.3m, with sports betting revenues rising by 24%.
The decision to float is designed to help the company expand internationally, with Europe and Australia seen as key growth markets, as well as the US, India and China.
There are concerns however that the IPO could be rejected by investors who suffered a loss after the flotation of online supermarket Ocado earlier in the year, despite reducing the IPO price.
Goldman Sachs and Morgan Stanley are set to act as joint sponsors and bookrunners, with Barclays Capital and Numis acting as co-lead managers.