Apollo-Backed Lottomatica seeks to raise $467M through IPO in Milan

Lottomatica, an Italian gambling company with backing from Apollo Global Management Inc., is planning to raise €425 million ($467 million) through an initial public offering (IPO) in Milan this year. The IPO will also include a sell-down by existing shareholders, although the details of this have not yet been disclosed. The company is seeking a valuation of around $5 billion, including debt.

The IPO market in Europe was effectively shut down last year due to rising interest rates and heightened inflation, which pushed investors into risk-off mode. However, some companies are now hoping that pent-up demand for listings will help them get IPOs away in the coming months.

Lottomatica operates in Italy's regulated gaming market and is active in the online, sports betting, and slot machine segments. The company has received commitments from banks, including some of the underwriters, for an up to €1.1 billion bridge loan facility aimed at refinancing senior secured notes due in 2025. The company also plans to use the proceeds raised in the IPO to pay down debt, as reported by Bloomberg.

Barclays, Deutsche Bank, Goldman Sachs, JPMorgan Chase, and UniCredit are joint global coordinators for the IPO, while Apollo Capital Solutions, Banca Akros, BNP Paribas, and Mediobanca are joint book runners. Equita SIM is the co-manager, and Credit Suisse is the financial adviser.

Sisal SpA, Italy's oldest betting company, also attempted to list on the Milan exchange before being acquired by Flutter Entertainment Plc in a £1.6 billion ($2 billion) deal agreed upon in 2021.