Racing and Sports PTY upsizes IPO as Entain backs ASX enterprise
Entain Plc is reported to be backing the upcoming ASX IPO of Racing and Sports PTY – the dedicated premium data, content and media supplier for Australian horseracing.
Sydney-based investment fund Ord Minnett confirmed that Racing and Sports would be elevating its target IPO raise to AUS $29 million (€19m) in order ‘to accommodate a cornerstone investment by Entain’.
Though branded as an endorsement of Racing and Sports ASX credentials, deal makers did not reveal the sum of Entain’s investment and further disclosed that – “no strategic relationship has been agreed between the two companies and Entain will not have a seat on the Board.”
Last September, Racing and Sports announced that it was saddling up for a AUS $20 million listing on the Australian Securities Exchange.
Upsizing the planned IPO, Ord Minnett detailed that Racing and Sports’ market cap would be enlarged to the AUS $65-to-$69 million range (€41-to-€44m).
ASX funds will be utilised to expand Racing and Sports product portfolio and commercial strategy – in which the company stated that it could strike a strategic alliance with Entain to accelerate its domestic and international expansion.
Entain’s Australian market profile is maintained by the brands of Ladbrokes Australia and NEDs international.
During H1 trading, Entain tabled a AUS $3.5 billion (€2.2bn) offer to acquire the TAB betting and media unit of Tabcorp Holdings that had been placed under strategic review.
Entain’s approach would be rejected by Tabcorp, as the ASX gambling giant withdrew its sale of TAB, choosing to instead divest its lottery and keno business.