Online Casino Sets IPO Date
The latest online casino operator to have decided to issue stocks on the London’s Alternative Investment Market (AIM) is Crystal Gaming. Earlier this week, the online casino group has announced plans to go public on November 25, which turns out to be next Friday. In the weeks leading to the IPO launch, the company’s worth was originally estimated at 140 million pounds. Why would any company decide to go public? For starters, this is a great way to raise capital which you can then use to invest in your company. In this regard, online casinos are not any different from any other corporation who is looking to recruit new investors.
Recently, a lot of online casino operators have released their numbers for the third quarter of the fiscal year. Many of them were able to increase their revenues from last quarter and also in comparison to 3rd quarter they experience in 2004. In many investors eyes this represents that the online casino industry is growing. Online casino operators, who are contemplating an IPO release, would choose to strike the iron while it’s hot. This would explain why Crystal Gaming choose this particular time to make its announcement.
When an online casino giant such as 888 records a strong 3rd quarter performance, it has a domino effect on the rest of the industry. However, ridding the coattails of others has proven to be a successful strategy for some online casino operators, but not for others. It would be interesting to see how Crystal Gaming will fare up next week. Details regarding the issue price of the stock have yet to be released.