Betfair Rises as Much as 20% After Its Public Offering Raises $331 Million

[Betfair]

Betfair Rises as Much as 20% After Its Public Offering Raises $331 Million

Betfair Group Ltd., a British Internet gaming site, climbed as much as 20 percent in its first day of trading after raising 211 million pounds ($332 million) in its London initial public offering.

Betfair’s owners sold 16.2 million shares at 13 pounds each, the London-based company said in a statement on the Regulatory News Service today. The shares rose as much as 265 pence to 15.65 pounds at 8:40 a.m. in London. A close at that price would be the best first-day performance among London IPOs since May 2009, when Max Property Group Plc surged 30 percent on its debut, according to data compiled by Bloomberg.

Betfair initially set a price range for the IPO at 11 pounds to 14 pounds each. Some large shareholders could sell a further 1.8 million shares through the so-called overallotment option within 30 days, according to the company.
“We have many opportunities to grow our leading position in the online sports betting and gaming market,” Chief Executive Officer David Yu said in the statement. “We are extremely pleased that new investors share our enthusiasm for the future of the business.”

Goldman Sachs Group Inc. and Morgan Stanley managed the IPO along with Barclays Plc and Numis Securities Ltd.