Cirsa begins preparations to enter the Spanish stock exchange
The Blackstone-owned group is beginning preparations to go public. The gaming operator’s valuation could exceed 5 billion euros.
Chirsafinally decides to step up its plans to go public. According to market sources, the Spanish gaming and entertainment group, owned by the American giant since 2018 black stone he hired services of investment banks Deutsche Bank, Barclays and Morgan Stanley as global coordinators of one of the most anticipated transactions in the stock market.
Sirsa’s intention, which Lazard as financial advisor deals, this listing on the Spanish Stock Exchange through an IPO aimed exclusively at institutional investors.
Disinvestment
Entering the stock market, which will not be inevitable, This is a way for Blackstone to sell part of the company. Catalan. Moreover, the operation will allow Cirsa to reduce financial leverage And in his case engage in the growth of operations in the gaming business. The group ended 2023 with net debt of €2.248 million.
The option of entering the trading floor has been discussed by Terrassa (Barcelona) for many years, but until now Chirsa argued that Neither market conditions nor ideal valuation existed to make this move.
Blackstone bought the company from businessman Manuel Lao six years ago for about $2 billion. euro and The group’s valuation could now top $5 billion. Euro. Before the company was sold, first in 1999 and then in 2017, Cirsa was already close to going public.
WITH 434 casinos, a fleet of 82,000 slot machines and about 2,500 sports betting outlets.in addition to industrial divisionCirsa is one of the world leaders in the gaming sector and operates in nine countries.
In 2023, a group chaired by Joaquim Agutachieved operating income of 1.991 million euros, which is 17% more than in 2022, after normalization of business heavily impacted by Covid. EBITDA was 630 million euros and net result was 80 million, representing year-on-year increases of 14.1% and 41% respectively.
Chance
Official sources at Cirsa confirmed yesterday that the company was “taking the usual precautionary measures to enter the stock market.” “We are committed to achieving a state of readiness that will allow us to act quickly when the opportunity arises,” the company said, adding that There is no exact schedule for the operation.. The IPO “will be subject to favorable market conditions and the achievement of valuations that reflect our true value and potential,” the company said. Based on these factors, Chirsa could debut on the stock market later this year or in 2025.
“Our strategic project is based on strong growth trajectory and promising future; Our goals and timetable include positioning the company as a strong and profitable leader in our industry, as well as preparing for a possible initial public offering when market conditions are favorable,” the company emphasized.
In January last year, Cirsa issued bonds worth 600 million to investors. euros for the purpose of debt refinancing. In connection with this issue, the company sought amortize ahead of schedule, in whole or in part, three previous debt transactions in the financial markets. Thickness matches issue of bonds for 390 million euros and PIK bond (payment in kind) 150 million, which expires in 2025.. Previously, Last July, Cirsa already placed 650 million worth of bonds on the markets. to offset emissions that expired in 2023 and 2024.
Currently, Cirsa’s board of directors consists of two directors representing Blackstone and two executive members: Joaquim Agut and Antonio Hostench, the company’s CEO.
Lottomatica grew by almost 30% in a year
Besides the pandemic, one of the factors delaying Cirsa’s stock market debut, an operation that has recently been compared somewhat sardonically by investment bankers to Guadiana, was the tumultuous stock market debut of Italian gaming operator Lottomatica. went public in April 2023 and had to lower its valuation from what it originally planned to meet demand.
The group from the trans-Alpine country set its IPO price at 9 euros per share and only recovered that price three months after its debut as it fell a few weeks after the bell rang.
However, improving market conditions and Lottomatica’s strong results have seen the Italian operator’s shares reach €10.8 per share, representing a revaluation of over 27% over the last twelve months and a price 20% above its IPO price. .
In any case, there are institutional investors who will not attend the stock market debut of the Blackstone-owned group due to their reluctance to invest in the gaming sector, which does not meet the environmental, social and corporate governance (ESG) criteria that guide their investment decisions .
It’s possible that the venture fund that owns Cirsa is exploring a direct sale to the highest bidder in parallel with the IPO process, since that door is usually left open in these types of “private equity” transactions. open. .
Europastry, Tendam and Hotelbeds are also following in Puig’s footsteps.
Puig’s IPO, which debuted at the top of its valuation range and trading 5% above its debut price, paved the way for other companies looking to go public.
Blackstone has been working with Lazard as a financial advisor for years to explore this opportunity for Cirsa, but did not press the red sell button until the group, which owns brands such as Byredo, Carolina Herrera or Jean Paul Gaultier, had completed its operations successfully .
Puig has reopened capital markets in Spain, where there has been no public offering of Opdenergy shares since mid-2022.
In any case, the gaming giant is not the only company working on such a feature. Following the retreat of Berger’s automotive subsidiary Astara, the two companies most advanced in their plans to start trading before August are Tendam and Europastry.
The group that owns Cortefiel and Women’Secret is proposing an initial public offering (IPO) of the existing shares of CVC and PAI, representing around 25% of its capital, for around 600 or 700 million euros.
For its part, the leader in Spain in the frozen dough sector for bakery and confectionery products is working on the issue of new securities (OPS) of 225 million euros with the sale of shares (OPV) in the hands of MCH and the family. founder of an operation whose total size will be around 600 or 700 million.
Hotelbeds, for its part, is working on a stock market float that will begin at the end of its financial year next September.