PartyGaming announced flotation this week

June 3, 2005

PartyGaming, the world's biggest online poker company settled weeks of intense speculation Thursday by announcing plans to float on the London Stock Exchange in what is likely to be the City's biggest new listing for four years.

Based in Gibraltar, PartyGaming barely existed four years ago but riding a wave of popularity in online poker playing, the operator of the PartyPoker website is set to be valued at GBP 5 billion, bringing a major windfall for executives, shareholders and employees.

With that sort of valuation, PartyGaming would immediately enter the FTSE 100 share index. The flotation would be London's biggest since insurer Friends Provident in 2001.

The 1,100 staff - from Indian call centre workers to head office staff in Gibraltar - will be given GBP 308 million in shares, averaging GBP 281,000 per employee.

The company's statement of intention to float included trading figures showing pre-tax profit in the three months to 31 March rocketed 77 per cent on a year earlier to GBP 67.5 million, on revenues up 93 percent to almost GBP 128 million.

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