Blackstone’s Cirsa IPO faces delay amid market uncertainty, pushing launch to Q2 according to Spanish media reports.
Key Takeaways:
- Cirsa’s IPO postponed due to stock market volatility
- Planned offering aims to raise up to €1bn
- Cirsa reported strong financial performance in 2024
Market Conditions Prompt IPO Delay
Blackstone’s plans to take Spanish gaming operator Cirsa public have hit a snag, with the initial public offering (IPO) now expected to launch in the second quarter of 2024. Spanish financial newspaper Expansión reported that the delay stems from stock market uncertainty, partly attributed to US President Donald Trump’s protectionist policies.
The IPO, codenamed Project Atalanta, was initially slated for mid-April. However, the timeline shift means the official announcement, known as an intention to float (ITF), has been pushed back from its expected March 13 date.
Offering Structure and Financial Goals
The proposed listing on the Madrid Stock Exchange will combine a public offering of Blackstone shares with a public subscription of new shares. This structure aims to generate funds for debt refinancing and adjust Cirsa’s leverage to align with publicly traded companies.
The total offering is expected to raise between €700m and €1bn, representing approximately 25% of Cirsa’s total share capital. Barclays, Deutsche Bank, and Morgan Stanley are reportedly coordinating the IPO.
Cirsa’s Recent Performance
Despite the IPO delay, Cirsa has demonstrated strong financial results. In 2024, the company reported operating revenues of €2.15bn and an operating profit of €699m, marking increases of 8% and 11% respectively from the previous year.
Cirsa’s executive chairman, Joaquim Agut, commented on the results: “Today’s results are a testament to the effective execution of our strategy, which focuses on the markets and business sectors where we hold a leadership position. We take pride in our ability to deliver strong financial performance, while fostering continued development and prosperity in the communities where we operate. Our commitment to excellence and sustainable growth allows us to create long-term value for our employees, customers, and strategic partners.”
Blackstone’s Involvement
The upcoming IPO follows Blackstone’s acquisition of Cirsa in 2018 from Spanish billionaire Manuel Lao Hernández. The private equity firm’s decision to take Cirsa public reflects the gaming operator’s growth and potential in the competitive gambling market.
As the gambling industry continues to evolve, Cirsa’s IPO will be closely watched by investors and industry observers alike. The company’s strong performance and strategic positioning in both land-based and online gaming sectors make it a significant player in the European gambling landscape.
