PartyGaming IPO Values Online Poker Company at 4.6 Bln Pounds

(Editor's note: To follow London Stock Exchange prices of PartyGaming Plc - http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?ti=PRTY )

Monday, June 27th, 2005

June 27 (Bloomberg) -- PartyGaming Plc's owners sold shares in the Gibraltar-based online poker company for 116 pence apiece in London, valuing the eight-year-old business at 4.6 billion pounds ($8.5 billion).

The shares were sold near the middle of the 111 pence to 127 pence range offered to investors, raising 907 million pounds for the company's owners. The stock is scheduled to begin trading at 8 a.m. this morning in London, according to a statement on the U.K.'s Regulatory News Service today.

Investors are betting that online gambling's popularity will outweigh any potential regulatory problems. The operator of the PartyPoker Web site makes 87 percent of its revenue in the U.S., where the Justice Department considers the business illegal. Revenue almost quadrupled last year and the PartyPoker site has gained active players every quarter since 2001.

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