Lottomatica IPO aims to raise £2.36bn

Lottomatica’s IPO – which is set to run from 24 to 27 April – will aim to raise €600m consisting of €425m of newly issued stock, as well as €175m of shares to be sold by existing investor Gamma Topco. A substantial chunk of the raised capital will be used to finance debt, much of which is owned by Lottomatica’s parent company Apollo Global Management.

Gamma granted investment firm Goldman Sachs an option to purchase nearly 20 million additional shares, to be exercised during a period of up to 30 days after the shares start trading on the Euronext Milan exchange. This amounts to around 15% of the total number of shares on offer.

The offering will initially be available to institutional investors in the European Economic Area and the UK, as well as some qualified investors in the US. The offering still awaits approval from the stock exchange Borsa Italiana and the Italian financial regulator Commissione Nazionale per le Società e la Borsa (CONSOB).

A consortium of banks including Barclays Bank Ireland, Deutsche Bank, Goldman Sachs, JP Morgan and UniCredit are acting as global coordinators and bookrunners for the venture. Credit Suisse is additionally providing financial advising services.

Lottomatica first year of trading

In May 2021, IGT completed the €950m sale of its Italian facing B2C gaming business to a subsidiary of funds owned by Apollo. Last month, Lottomatica’s 2022 financial report saw revenue growth push the business into profitability during its first full year of trading since the company’s acquisition.

During the period, Lottomatica reported a net profit of €79.3m, following a 72.8% increase in revenue. The company was able to report a net profit of €79.3m (£69.7m/$84.0m) for its 2022 financial year following a 72.8% increase in revenue to €1.41bn.