Last modified 27-01-2005 02:09 PM Online gambling giant PartyGaming is mulling the possibility of a flotation on the London Stock Exchange that could value the company at more than £3bn.
The Gibraltar-based firm, considered to be the largest online poker firm in the world, is expected to announce the appointment of advisers to a possible flotation today.
The firm, which was launched in 2001, runs three main brands, PartyPoker, StarluckCasino and PartyBingo, and now has more than half the global online poker market. PartyPoker alone is estimated to have around 5 million users.
An LSE flotation could place the firm within the FTSE 100. However, key banks such as Merril Lynch, UBS and Deutsche are reportedly declining to be involved in the floatation, as PartyGaming's biggest market, the US, is still unclear on the legality of online gambling.
PartyGaming , which last year changed its name from iGlobalmedia, said it had retained investment banks Dresdner Kleinwort Wasserstein and Investec to review its options.
Other options under consideration to take the company forward include raising debt or seeking a merger partner.
However, the firm is reportedly keen on a flotation after seeing the successful acquisition of Paradise Poker, a rival poker site, by Sportingbet, the UK-listed online betting company. Subsequently, "Sportingbet": http://www.netimperative.com/search?sort_on=Date&sort_order=descending&SearchableText=sportingbet shares rose nearly 64%.
Last year, PartyGaming reported earnings before interest, tax, depreciation and amortisation of about $350m.
PartyGaming also runs casino and bingo websites, and it now claims that 12,000 people are playing its online games at any one time.
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