Betfair aims for FTSE-250 in flotation

(SHARECAST) – Online sports betting group Betfair could become a FTSE- 250 company if it raises its hoped £1.16-1.48 billion target ahead of its listing on the London Stock Exchange.

Betfair founders Andrew Black and Ed Ray hold 22.5 percent of the shares in the company, a stake worth £261-333m according to the company’s valuation plans. They are expected to sell about 10 percent of their holding as part of the flotation.

Broker KBC Peel Hunt said recently that Betfair’s IPO ‘should get off to a
positive start.’ The business believes that there is a large market of potential recreational gamblers for it to tap into.

The broker noted that a valuation of £1.5bn would be 21.7 times full-year EBITDA for 2010, valuing Betfair higher than other online gaming companies such as bwin and PartyGaming.