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  • BlueBet Holdings (BBT) continues to trade strongly after listing on the ASX last Friday
  • Its listing followed a successful $80 million IPO, with shares soaring 85 per cent during the company’s first day on the market
  • BlueBet shares have since pared back their initial gains but are still trading comfortably above their IPO price
  • While it expands its online bookie offering across Australia, BlueBet is also planning to expand into the US market
  • Shares in BlueBet closed 4.57 per cent higher at $1.83 each this afternoon

BlueBet Holdings (BBT) has continued to trade strongly since listing on the ASX last Friday.

Shares in the company, which offers online racing and sports betting Australia-wide, soared last week after completing its $80 million initial public offering (IPO).

Under the IPO, around 70 million BlueBet shares were on offer at $1.14 each to raise the $80 million.

This gave BlueBet a market cap of just over $228 million upon listing.

On BlueBet’s first day on the market, however, shares soared 85 per cent to hit $2.10 each.

While shares have pared back their gains since then, BlueBet has still traded comfortably above its IPO price this week, with shares between roughly $1.70 around $1.90.

Why the IPO?

BlueBet management said the call to go public with the company meant it was now in a strong position for future growth.

With an extra $44.7 million in its pockets following the IPO — after accounting for the costs of the $80 million raise — BlueBet said it would be investing into its Australian marketing and, at the same time, working to establish its business in the US.

BlueBet CEO Bill Richmond said the company had experienced strong recent trading performance in the lead-up to the IPO.

“BlueBet has experienced strong growth since the business was established in 2015 and, with the benefit of the primary IPO proceeds, BlueBet is well-positioned to capitalise on the significant opportunities available to it,” Mr Richmond said.

The strong trading performance has led to a turnover of around $345 million for the 2021 financial year, with almost 32,500 active customers. This turnover figure is expected to grow to $390 million for the 2021 calendar year, according to BlueBet’s prospectus.

As it stands, BlueBet is currently debt-free with around $51.3 million worth of cash on hand.

A planned US expansion

BlueBet management said a portion of the IPO funding would go towards its US expansion plans — particularly in the form of deals with casinos, sports organisations and media groups.

The company said it already has some deals in Iowa, Virginia, and Colorado in the works, with two other states targeted as priorities for BlueBet’s initial market entry as a wagering provider.

Meanwhile, the company will continue expanding in Australia and investing in its technology suite as it works to establish itself in the States.

According to BlueBet, Australia has the highest per-capita gambling spend in the world, with online sports betting predicted to be worth $3.9 billion at the end of the 2021 financial year.

Today, shares in BlueBet closed 4.57 per cent higher at $1.83 each.

BBT by the numbers
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