Summary
- Cirsa marks the second-largest initial public offering in Spain's history.
- The company's value reached €2.5 billion as planned.
- Cirsa has persistently pursued an aggressive strategy of acquiring assets in recent years.
Cirsa, a gaming asset owned by Blackstone, has reached a major milestone by becoming the largest initial public offering in Spain's history, successfully achieving its target of €2.5 billion (approximately $2.9 billion). The IPO began strongly on Wednesday, with the stock price initially surging by 6.7%, reaching €16. However, as anticipated by Cirsa, the initial momentum eased, and the share price settled back to €15.
Cirsa starts trading on a strong foothold
The company's stock market listing was celebrated as a success and stands as one of the most significant business milestones in Spain. Cirsa, which operates 450 casino properties across 11 countries, successfully raised €400 million through the issuance of 26 million shares. Additionally, Cirsa owns some of the top online casinos in Spain and beyond. The listing sends an important message to global investors, considering that the European IPO market has been quite inactive. However, a major gambling enterprise might not be the ideal investment some are seeking. Nevertheless, Cirsa remains one of the most influential companies in the gambling sector. Founded in 1985, the company was acquired by Blackstone in 2018, with the investment firm paying €2.1 billion to gain control. Cirsa has been aggressively expanding its presence in the gambling industry, focusing particularly on Latin America, its European base, and new markets like Portugal and Italy. The acquisition of Apuesta Total and Casino Portugal indicates Cirsa's strong financial position and its drive to continue acquiring new assets in strategically important markets for long-term growth. However, Cirsa still faces challenges, such as addressing its net debt, which currently stands at €2.37 billion.
Blackstone knows how to turn gaming assets into winners
Reducing the debt burden has been highlighted as a key priority for Cirsa by its leadership team. Despite general skepticism toward the gambling industry, significant investments like Blackstone's acquisition of Cirsa have proven successful. Lottomatica, a major Italian gaming company that went public in 2023, has already seen an 80% increase in its share value. Meanwhile, Blackstone is also focused on stabilizing Crown Resorts and potentially expanding the struggling Australian brand, even as regulatory pressures remain high.
