Playtech getting ready to float


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Jun 30, 1998
PlayTech mulls London IPO

The company value for the issue could reach hundreds of millions of dollars.

Tali Tsipori 26 Sep 05 14:13

The slide in online gaming company shares in London apparently is not deterring PlayTech Cyprus Ltd. controlling shareholder Teddy Sagi. PlayTech develops operating and management software for online gaming sites. According to reports over the weekend, PlayTech has taken its first steps towards an IPO on the London Stock Exchange (LSE).

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Of interest from the article. I don't think Playtech is up there with Cryptologic in reputation. Interesting that Elad was in charge of a company that was delisted, that tends to be a bit offputting. And the usual porno connection...

PlayTech reportedly has an interesting story to present to investors, especially in view of its large number of customers. Online gaming industry analysts predict that PlayTechs value could exceed CryptoLogic Inc.s (Nasdaq:CRYP; TSX:CRY; LSE:CRP) market cap of ₤195 million ($346 million). CryptoLogic, a Canadian company founded in 1996 and a competitor of PlayTech, offers its customers a comprehensive online casino management solution, including payment clearing.

Despite the collapse in online gaming shares, some sources predict that the value of PlayTechs IPO could reach hundreds of millions of dollars.

PlayTech was founded in 2000 by NAV New Age Investments Ltd., controlled by Sagi and three 30-something entrepreneurs from central Israel. NAV was delisted from the Tel Aviv Stock Exchange (TASE) in 2003. PlayTech VP marketing Elad Cohen was formerly CEO of NAV. PlayTechs other two founders are reportedly Amnon Ben-Zion and CEO Rami Beinish. Ben-Zion and Cohen met during their military service at Mamram (the IDF central processing unit). Cohen started out in online pornography. He was later introduced to Sagi by common acquaintances, thereby paving the way for Sagis investment in the company. Ben-Zion sold his PlayTech stake a year ago.

A valuation for PlayTech conducted for NAV in late 2002 stated that NAV owned 68% of the company, Elad Cohen 19%, and the other two founders owned 6% and 7%, respectively. PlayTech was valued at $18.4 million, after deducting debts, a figure that now seems ridiculous. The valuation was carried out for a failed attempt by Sagi to obtain capital for the company by issuing 10% of its capital to an external investor. The valuation indicated that PlayTech had $4.5 million in revenue in 2002, and an operating profit before financing expenses of $1.5 million. NAV was delisted from the TASE at a value of NIS 20 million.

Published by Globes [online], Israel business news - - on September 26, 2005
Seems like the bandwagon is well and truly rolling. Not a bad thing for the industry at all. Even if share prices fall to more, ahem, realistic levels, the regulation afforded by listing is much needed in an industry that craves credibility IMHO.
i think a lot of these firms as rushing to a listing because it looks like the bubble is going to burst on them soon, in the same way it did with all those internet stocks a few years ago.

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