PointsBet secures support for IPO

Business News

PointsBet is asking potential investors to value the company at up to 8.35-times historical revenue for its $200 million-plus sharemarket listing.

According to terms sent by stockbroker Bell Potter Securities on Monday, PointsBet will seek to raise $60 million to $70 million for a $205 million to $215 million market capitalisation.

New shares were being offered at $2 each, in a deal valuing PointsBet at 8.33-times to 8.35-times 2018 calendar year net revenue.

PointsBet, which is an online corporate bookmaker with operations in Australia and New Jersey, is making a growth pitch to potential investors.

The business was launched in March 2017 and had 77,876 registered clients in Australia as at the end of last month, and another 16,019 in the United States. Client numbers increased nearly fivefold in the past year.

The company would use the funds for marketing and client acquisition (up to $33.9 million), technology and platform development ($10 million), business development in the US (up to $22 million) and payment of the offer costs.

New shareholders would own up to 32.6 per cent of the company on listing, leaving the lion’s share of the company for existing backers.