Cirsa meets €2.5bn IPO target in landmark moment for the Spanish gambling operator
Cirsa has achieved Blackstone’s target in its debut on Spanish stock markets.
Spain.- The Spanish gambling operator Cirsa has made its long-anticipated debut on Spanish stock exchanges, achieving the €2.5bn valuation targeted by its owner Blackstone. The first day of trading raised €400m in new capital.
Cirsa’s IPO on the Bolsa Madrid had been put back by several months due to the turbulence in equity markets amid Donald Trump’s tariff threats and tension in the Middle East. Shares rose 6.7 per cent to €16 in initial trading before stabilising at the offer price of €15, matching the offer price. Today, they dipped slightly to 14.84 as we approach the close of European markets.
Some 26 million new shares were issued, and Blackstone intends to use the proceeds to lower Cirsa’s debt levels. An additional €121m may be raised through an over-allotment option.
The private equity firm acquired the Spanish gambling group in 2018 from entrepreneur Manuel Lao Hernández. The group returned to operational profitability in 2022. It initially planned to target up to €2bn in fundraising via primary and secondary stock placements, but scalled back the offering due to cooling investor interest and ESG concerns from institutional funds.
Several Spanish asset managers, including Bestinver, Mutuactivos, and Santander AM, refrained from taking part due to internal restrictions against investing in gambling firms. Cirsa could also be affected by Spain’s plans to tighten gambling oversight regime with enhanced protection policies for under 21s.
As well as its business in Spain, Cirsa is present 11 countries in Latin America, including Argentina, Colombia and Mexico. It opened its first casino in Spain in 1985 and now operates around 450 casinos internationally. Recent acquisitions include majority stakes in Casino Portugal and Peruvian sports betting operator Apuesta Total.
For 2024, Cirsa’s reported net revenue of €2.2bn, up 8 per cent year-on-year. Earnings before interest, depreciation and amortisation rose by 11 per cent to €699mn. Executive chair Joaquim Agut has suggested that becoming a public company will allow Cirsa to grow faster while it reduces its net debt from €2.37bn.
The Cirsa IPO in Spain follows Apollo’s flotation of Lottomatica in Milan in 2023. Its shares have risen by 80 per cent this year.
