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.