Cirsa plans for €2.5 billion post-IPO valuation for M&A activities

, a Spanish operator, is planning to raise €2.5 billion through an initial public offering (IPO) by offering shares at a price of €15 each. This move is part of the company’s strategy to continue its aggressive mergers and acquisitions (M&A) spree, which has seen over 130 acquisitions completed since 2015.

The decision to go public comes after Cirsa’s impressive performance, with the company reporting consistent growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) for 67 consecutive quarters, excluding those affected by the Covid-19 pandemic. Acquired by Blackstone in 2018, Cirsa has expanded its presence to 11 global markets, including recent entries into Peru and Portugal through acquisitions.

The IPO aims to raise €400 million, which Cirsa plans to use to bolster its M&A strategy and strengthen its capital structure. The company will offer 26,666,667 newly issued shares in its primary offering, while a secondary sale of 3,552,113 existing shares will be conducted for the benefit of certain current and former employees. An over-allotment option will also be granted to Morgan Stanley Europe, allowing for the acquisition of up to 4,532,817 additional shares within 30 days of trading commencement, bringing the total offer size to 34,751,597 shares.

Cirsa’s CEO, Antonio Hostench, expressed optimism about the IPO, noting that it marks a significant step in the company’s growth trajectory. The equity raise of €400 million could expedite Cirsa’s growth plans and provide additional support for its M&A investment capacity, aiming for €400 million to €500 million in organic cash flow generation between 2025 and 2027.

In a statement, Hostench highlighted the company’s commitment to leveraging the IPO to pursue new projects and solidify its leadership position in the sector. The decision to go public reflects Cirsa’s ambition to continue its expansion and further cement its market presence through strategic acquisitions.

Overall, Cirsa’s IPO represents a strategic move to fund its M&A strategy and drive growth in the competitive gaming and sports betting markets. With a clear focus on continuing its acquisition streak, Cirsa aims to capitalize on the equity raise to fuel its expansion plans and enhance its market position in the years to come.