Swedish Startup Space

Jackpot for Leovegas shareholders – IPO valuation is expected to surpass $350 million

Written by on March 2, 2016

A number of prominent figures in the tech industry are the big winners when mobile casino Leovegas is listed on Nasdaq First North.

Leovegas will be listed on First North within a few weeks, and its financial advisors, SEB and Carnegie, has already started looking for potential investors.

The official price has not been set, but an indication has been given in talks with investors. The market capitalization will be somewhere between $350 (3 billion SEK) and $430 million (3.7 billion SEK).

“It will probably be a small discount from the highest level, but the banks are certain that the valuation will surpass $350 million”, a source, who sat in on an IPO presentation, says.

The new valuation is a big step up from the last private equity round. The last round was closed in the first months of 2015 and set the company valuation at $93 million (800 million SEK, calculated with the current exchange rate). The valuation has, in other words, quadrupled since the latest private equity round.

The company’s strong growth has been, perhaps unsurprisingly, the driving force behind the increased valuation. Yearly revenues have grown from nothing at all to over $90 million in just five years, and the company has been profitable from the start. Revenues saw a 120 percent increase just in the last 12 months.

The two founders, Gustav Hagman and Robin Ramm, still own 20 percent of the company. The founders of the Russian classifieds-company Avito, Jonas Nordlander and Filip Engelbert, got in early and holds about 5 percent of the shares according to Breakit’s sources.

Per Roman’s tech fund GP Bullhound and Per Brillioth, CEO of the investment firm Vostok, are also names that can be seen on the cap table.

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