PointsBet aims to raise $50m with Australian IPO
Operator looking for new funds to take advantage of potential $17bn US market
Australian bookmaker PointsBet is looking to raise nearly $50m though an IPO to help the company fund its US expansion.
According to documents circulated by broker Bell Pottinger, the firm is looking for a valuation around $145m, or 8.3x its 2018 revenues.
The business, launched in March 2017, has 78,000 Australian customers and 16,000 in New Jersey where it launched in January.
Around a third of the equity in the company is being put up for the IPO, with existing backers, including News Corp, retaining the majority stake.
PointsBet said it would use the new funds for marketing and client acquisition, technology and platform development, and business development in the US.
According to the investor document, PointsBet had $8.5m in net revenue in the first half of the 2019 financial year, with a $5.5m EBITDA loss.
The operator said the US market could be worth $17.3bn a year across the 50 states, while its native Australian market was worth around $3.1bn annually.
The operator would be listed on the Australian Stock Exchange (ASX) from June 12 should the IPO be successful.