Firm Proceeds
with IPO Despite Rival's Stock Plunge
888 Holdings Plc, the world's
largest Internet casino operator by number of visitors,
is proceeding with its plan to sell stock in an
initial public offering even as shares of rival
PartyGaming Plc plunged Tuesday.
888 hasn't changed its plan to sell shares,
said a spokesman for the Gibraltar-based company,
who declined to be identified, in a telephone interview.
The company has had "very positive feedback"
from investors ahead of this month's sale, he said.
Shares of PartyGaming Plc, the online operator
which competes with 888 in poker gaming, fell as
much as 37 percent today after the company said
revenue growth is slowing, wiping about 2.4 billion
pounds ($4.4 billion) from the company's market
value. As of Monday, PartyGaming shares had risen
35 percent since its IPO in June, while the shares
are now trading below the offering price.
PartyGaming's valuation is being used as a benchmark
for 888's business, bankers said. Shareholders of
888, who plan to sell $500 million of stock in an
IPO that would value the company at about $1.5 billion,
may raise less now in the offering, bankers added.
Gibraltar-based PartyGaming, which makes 87 percent
of its revenue in the U.S., said revenue gains are
slowing as competition mounts because more operators
are seeking to enter the market.
Founded in 1997, 888 operates the Casino-on-Net
and PacificPoker Web sites. Casino business accounts
for about two- thirds of 888's sales.
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