Rumours are true - Playtech plans IPO in London

The rumoured London listing of turnkey provider Playtech was confirmed this (Friday) morning by a company spokesman, who said that his company hoped the shares would be placed with institutional investors by the end of March.

The spokesman confirmed that Playtech plans to raise GBP 175 million in a London stock market flotation that will value it around GBP 550 million.

The firm, majority-owned by Israeli internet-gaming entrepreneur Teddy Sagi, counts the Tote, Bet365 and BetFred among its clients and is the latest in a series of online gambling firms to opt for a London listing. Yesterday, Excapa Software, which also makes online poker software, floated on London's junior AIM market and saw its shares rise 5 percent in early trade.

Cyprus-registered Playtech said in a statement it made sales of GBP 27.4 million and a post-tax profit of GBP 20.5 million for the financial year to December 31, 2005.

Collins Stewart has been appointed as sole bookrunner, nominated advisor and joint broker. Seymour Pierce is joint broker.