Online bingo group Intertain (IT:TSX) is hoping to bring its share price back to life by floating on the London Stock Exchange in mid October 2016 under the new name of Jackpotjoy.
The gambler already has a stock market presence in Canada but hopes it could get better recognition - and thus a higher valuation - by switching its listing to the UK where it would sit among a broad group of gambling stocks.
The business is presently worth around £430 million and should qualify for the FTSE 250 once it completes the listing transfer.
Jackpotjoy is the name of the business it acquired in April 2015 as part of a broader buy-and-build strategy. It first listed on the Toronto Stock Exchange in 2014 after buying InterCasino. It has also bought Mandalay and Vera&John that year.
The UK is its main customer market and it claims to have a 27% market share of the country’s bingo industry, based on statistics relating to the first half of 2015.
Intertain initially enjoyed a strong share price rally when it floated two years ago. The share price peaked at around C$20 in mid 2015 and has since halved in value.
The nearest comparative stock in the UK is Stride Gaming (STR:AIM) which specialises in bingo and has also experienced a volatile share price.
Stride Gaming’s stock surged ahead following its 2015 IPO but then saw a pullback towards the end of the year, followed by a fairly flat performance so far in 2016.
Intertain says its business targets 35 to 50-year old female players. ‘This target demographic positions the group uniquely among other large UK online gaming companies, which focus more on the male, sports betting demographic,’ it comments.
Other UK-quoted stocks involved in the bingo market, albeit part of a broader portfolio of gambling products, include 888 (888), Rank (RNK) and GVC (GVC).
