Telematic Interactive Bulgaria EAD is the owner of the license for the casino and sports betting platform Palms Bet and the company has announced its decision to launch an initial public offering of shares on February 14.
The deadline for submitting the offers is 14-18 February and the results will be announced by the end of the next working day. The method chosen for ranking them is “book building”. Investors may submit their offers through any licensed investment firm, the statement said.
The company plans to increase its capital by 10% via the issuance of 400,000 new shares and expects to raise about BGN 20 million.
Given investor interest, the majority shareholder, Eldorado Corporation AD will offer for sale another nearly 400,000 currently existing shares.
The set price range is between BGN 50 and BGN 75 per share, which means that Telematic’s market evaluation is expected to grow to between BGN 200 and 300 million.
Upon their successful sale, the freely traded shares will form 18.2% of the capital, and the market capitalization of the free float is expected to exceed BGN 40 million.
At the end of 2021 Telematic Interactive Bulgaria announced its intentions to get listed on the Bulgarian Stock Exchange (BSE). At the end of January the Financial Supervision Commission (FSC) approved the prospectus.
The funds raised will be used to expand onto new markets and currently the company is preparing to penetrate the market in Peru.
It has also adopted a dividend policy to distribute not less than 40% of the realized profit.
In addition to casino games and sports betting, Telematic also invests in online games which it provides to operators in Europe, Latin America, Africa and Asia.
During the first nine months of 2021 the company has reported a considerable growth in revenue from bets and services – up to BGN 53.9 million compared to the 17.638 million registered during the same period of 2020, which indicates an increase of 205.6% on an annual basis. Net profit has increased to BGN 14.4 million by the end of September 2021 compared to the BGN 4.937 million collected by end of September of 2020, thus showing an increase by 191.67%.
During the whole 2020, casino gaming and sports betting revenues have reached BGN 28.413 million which is an increase by 517% compared to 2019. The net profit for 2020 amounts to BGN 7,384 million compared to only BGN 287 million for the year 2019.
The company has declared an almost 38-fold increase in revenues over the past three years and these are expected to reach BGN 78 million in 2021 with a net profit of over BGN 20 million.