While the IPO was oversubscribed multiple times, it closed at the IPO price of €15 on its first trading day and has remained flat since then. 

Here’s everything we know about the IPO and Cirsa, which is the second-largest listing in Spain this year, in a market that has been lackluster for new listings in Europe.

Cirsa Stock Falls Below IPO Price

Cirsa shares briefly rose to €16 on their debut day, or 6.7% higher than their issue price, but quickly lost momentum. The stock also briefly fell below its IPO price today.  

Typically, massively oversubscribed IPOs, such as Cirsa, deliver substantial listing gains. 

However, companies often tend to price the IPO at higher prices as the demand for shares outweighs the supply. That leaves less room for post-listing upsides.

While investors haven’t seen immediate gains in the Cirsa IPO, Blackstone, which acquired the company for an enterprise value of around €2 billion in 2018, has made decent returns.

According to reports, at the IPO price, the equity value in Cirsa IPO was 2.5 times Blackstone’s original investment.

Nonetheless, Cirsa’s listing is a boost not only to the gaming sector but also to European stock markets, where IPOs have plummeted to 46 in the first half of the year, compared to 61 in the same period last year, according to Dealogic.

What Cirsa Plans to Do with the Funds

Cirsa raised €400 million in capital through the IPO, which could increase to €521 million if the overallotment option is fully exercised. At a minimum, 18% of Cirsa’s shares will be freely tradable on the market. 

The company plans to use the proceeds to reduce its debt, which currently stands at €2.37 billion, and aims to achieve a net leverage ratio of between 2.0x and 2.5x.

Additionally, Cirsa plans to consider acquisitions worth between €400 million and € 500 million between 2025 and 2027. 

The company has identified 100 potential targets, primarily in Latin America and Spain.

Acquisitions have been a key growth pillar for Cirsa, and the company has acquired 130 companies since 2015, spending a cumulative €1.2 billion. 

Notable recent deals include sports betting operator Apuesta Total in Peru, as well as Casino Portugal.

A Diversified and Growing Business

Cirsa has globally diversified operations. Spain is the company’s biggest market, where it’s a casino market leader. 

The company also operates in Italy, Morocco, Latin America, Portugal, and Puerto Rico. 

The company’s online segment is its fastest-growing business segment, accounting for 22.5% of its total operating net revenues in the first quarter of this year.

Looking at EBITDA contributions: 

• Casino business: 58% of EBITDA with a 42% margin.
• Slots Spain (slot machines): 27% of EBITDA, 46% margin.
• Online gaming: 12% of EBITDA, 20% margin.

The online gaming business is still evolving and navigating regulatory uncertainty; while its margins are arguably lower, it is also the fastest-growing segment for Cirsa. 

First-quarter revenues rose by 54.8% year-over-year, supported by expansions into new markets, including Peru and Portugal.

Cirsa has a strong track record of growing its EBITDA, with the metric increasing for 67 consecutive quarters (excluding quarters affected by the COVID-19 lockdown).

Last year, the company posted €2,150 million in operating revenue (8% year-over-year increase) with an operating profit of €699 million(up 11% year-over-year). 

Cautious Investor Reaction Despite Strong Fundamentals

While Cirsa’s IPO was heavily oversubscribed, investors remained cautious after the debut. The stock reached €16 but closed unchanged, reflecting hesitation. 

Some investors raised concerns over Cirsa’s relatively high debt and heavy reliance on Latin American markets and online gaming. 

Others noted that Cirsa’s estimated post-IPO value of roughly €2.5 billion places the enterprise value-to-EBITDA in the approximately 7.5x range, providing limited room for short-term upside. 

Notably, several prominent Spanish fund managers opted out of the IPO. They cited ethical or regulatory discomfort. 

Dividend Plans in 2026

Cirsa does not currently pay dividends, but the company intends to do so in 2026, targeting a dividend payout of 35% of its adjusted net profits. 

The company has a cash conversion of 74% which is quite robust. In its IPO prospectus, the company said: 

“This strong cash generation provides a platform for a ‘virtuous circle’ of profitable growth, while enabling CIRSA to deleverage and still maintain a disciplined and attractive dividend policy.” 

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According to the Spanish business outlet Expansión, Blackstone has mobilised several banks to support CIRSA’s IPO in Madrid.

Speculation about Blackstone’s plans for CIRSA has been ongoing since 2022, when the Spanish gambling company rebounded to profitability after the COVID-19 pandemic.

Blackstone has owned CIRSA since 2018, having acquired the business from its founder, Manuel Lao Hernandez, for €2 billion. The acquisition was part of Blackstone’s strategy to expand its European gambling portfolio.

Since a corporate reorganization in 2022, CIRSA has exceeded market expectations. For 2024, it is on track to achieve net revenues exceeding €2 billion, an EBITDA of €680–710 million, and a leverage ratio of 3.7x–3.9x.

Reports indicate Blackstone plans to list 20–25% of CIRSA’s shares on the Bolsa Madrid, aiming to raise €700 million to €1 billion. This approach marks a shift from the earlier idea of a full IPO.

Lazard has been named financial advisor for the IPO, while Barclays, Deutsche Bank, and Morgan Stanley will handle global capital markets.

CIRSA operates over 30,000 gambling machines across recreational and hospitality venues in Spain, along with 40 bingo halls, six casinos, and 237 arcades.

Internationally, CIRSA expanded into Peru this year by acquiring a 70% stake in Apuesta Total. This deal made CIRSA Peru’s largest gambling operator, adding 500 betting points and an online sportsbook to its existing portfolio of 19 casinos and 3,200 slot machines.

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The Spain centric partnership will see the use of artificial intelligence be incorporated into Unidesa Interactive’s Forward Systems brand, through integration of the Jada Brain platform.

Alberto Alfieri, co-founder of Jada Gaming, commented: “We are delighted to start working with Unidesa Interactive and, with it, integrate our modules into the networks of the leaders in the land based gaming market. 

“Our Jada Brain AI solution is incredibly powerful, and we have adapted it to optimise physical gaming operations.”

The Jada Brain features a set of tailor-made solutions specifically designed to improve what the group calls “the most critical areas of game management,” such as actions related to responsible gaming, among others, in a bid to improve the efficiency of the system. 

In addition, Jada Gaming’s data expertise and analysis will also allow marketing actions to be more accurately targeted. 

Furthermore, the network of Unidesa operator partners who have opted to utilise Forward Systems will also be able to gain access to new artificial intelligence modules, which look to drive performance and optimise the real-time management of their game rooms.

Josep Casas, Director of Cirsa’s B2B division, added: “The integration of this artificial intelligence solution from Jada Gaming will allow us to offer a pioneering room management system in Spain. 

“An added value, without a doubt, to our Forward Systems, which currently has 42,000 connected machines in the world.”

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As the group’s former CMO, Carrion will now shift his focus on developing a ‘high performing’ organisation by thaligning the company’s technology, business and marketing services to operate as one.

Carrion shared that he is proud to be trusted in the new position, adding: “During my time here, the company has excelled in every area and continues to see rapid growth.”

Carrion has previously developed the strategy, teams and tech stack around SEO, PPC, paid social, affiliates and display advertisement, as well as multiple award-winning campaigns.

These have included GameOn and the PokerStars NLHE Championship which helped him earn a place on Gaming Intelligence’s prestigious Hot 50 list of online gaming’s most influential professionals.

“We have bold aspirations for the future, our goal for the Gaming1 interactive business line is to outperform market growth, we are set to double our revenues within the next five years. We aim to do this based on scalability and by delivering real quality to the player,” he continued.

The franchise this year became the first company to launch a live casino in Columbia via its collaboration with live casino provider, Evolution.

Additionally, Gaming1 also expanded into the US market and claims that it now has plans to also launch in the Netherlands in the coming months, while it continues to grow in Belgium.

Commenting on the appointment, Sylvain Boniver, co-founder of the enterprise, added: “Everyone at Gaming1 is delighted to have David take on more responsibilities as the company’s new COO Interactive.

“During his time as a chief marketing officer, David showed his quality and experience in delivering impressive growth strategies. We are confident that in his new role, David will excel and continue being a tremendous and valuable asset to the company and its partners.”

Further previous experiences of the new appointee include Spanish Casino Group Cirsa, and also at The Stars Group where Carrion led digital marketing before becoming Marketing Director of PokerStars.

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Operating income was €423.5 million and the group managed a small operating profit despite a €16.1 million hit on currency devaluation against the euro.

The company showed revenue growth in all of the countries in which it operates, including in 23 new casinos acquired in mid 2017 in Peru, Panama, Colombia and Costa Rica. The Spanish AWP business also showed improved revenues, helped by a successful machine, Perla del Caribe deluxe, and from revenues derived from smaller local operators acquired in the year.

Cirsa has 147 casinos, operates more than 75,000 machines, 70 bingo halls, 178 arcades and 2000 sports betting points.

Moving forward, Cirsa will now operate under the ownership of US private equity firm Blackstone Capital, who this April completed a reported €2 billion acquisition for the Spanish gambling enterprise.

Under the terms of the deal, Cirsa’s Argentine arcade and casino properties will continue to be operated by the Lao Hernandez family.

Updating corporate stakeholders on its current financial position, Cirsa governance details that it has active cash balance of €180 million, combined with an available credit facility of €75 million.

The post Cirsa hindered by LATAM currency woes but profits still up appeared first on CasinoBeats.

On April 27, the two companies issued a joint statement confirming the deal. Media reports suggest the takeover may be worth more than €2bn as Blackstone saw off competition from rival bidder Apollo Global Management, although no Apollo offer was publicly confirmed.

The deal sees Blackstone acquire Cirsa’s casino, bingo and sports betting operations in Spain, Italy and most of Latin America.

The Cirsa estate includes nearly 150 casinos and more than 75,000 gaming machines.

However, the business in Argentina will continue to exist as a separate entity, overseen by Cirsa founder Manuel Lao Hernandez.

Hernandez will step down as chairman of Cirsa, with Joaquim Agut, who has been chief executive since 2006, taking on the role.

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