Cirsa plans €400 million IPO for future M&A funding

Spanish gaming and casino operator Cirsa has officially announced its plans to conduct an Initial Public Offering (IPO) on Spanish stock exchanges, aiming to raise €400 million ($460.4 million) through the issuance of newly issued ordinary shares. This strategic move is intended to propel the company’s growth strategy forward and fortify its capital structure.

Cirsa’s decision to go public comes after years of speculation and anticipation in the industry. The IPO will not only bolster Cirsa’s financial standing but will also facilitate the funding of future mergers and acquisitions, aligning with the company’s proactive acquisition strategy. Since 2015, Cirsa has successfully completed over 130 acquisitions, including the acquisition of significant stakes in leading operators such as Apuesta Total in Peru and Casino Portugal. By leveraging the proceeds from the IPO, Cirsa aims to continue its expansion efforts and maintain its position as a key player in the global gaming and casino sector.

The IPO will see Cirsa offering shares for trading on multiple prominent stock exchanges in Spain, including Barcelona, Bilbao, Madrid, and Valencia. However, the exact timing of the submission is contingent upon various factors, such as prevailing market conditions and regulatory approval from the Spanish Securities Market Commission.

Cirsa’s leadership team, including Executive Chairman Joaquim Agut and CEO Antonio Hostench, expressed their enthusiasm and optimism regarding the IPO. Hostench emphasized the significance of this milestone for the company, underscoring the opportunities it will unlock for future projects and consolidation of their industry leadership. Both Agut and Hostench affirm their commitment to Cirsa by retaining their stake in the company even after the IPO.

In addition to the primary offering, Cirsa plans to conduct a secondary sale of approximately €60 million in shares to address tax obligations and other expenses related to management holdings. Notably, this secondary sale is intended for the indirect benefit of select current and former employees, as well as managers, with no cash proceeds being allocated to the management team beyond tax and expense settlements.

Looking ahead, Cirsa has set ambitious targets for its financial performance, projecting a 2025 EBITDA range of between €740 million and €750 million. The company aims to reduce its net leverage ratio and expects net operating revenues to grow steadily, driven by both its land-based and online gaming operations. By the end of 2025, Cirsa anticipates net operating revenues to reach between €2.28 billion and €2.33 billion, positioning itself for sustainable growth in the years to come.

The decision to pursue an IPO follows Cirsa’s strong performance in Q1, marked by a 12.5% increase in net operating revenue compared to the same period last year. Founded in 1978 and acquired by Blackstone in 2018, Cirsa has evolved into a multinational entity with a presence in 11 countries across Europe and Latin America. The IPO launch underscores Cirsa’s commitment to capitalizing on its recent success and fostering continued growth and expansion in the dynamic gaming and casino industry.