A Bloomberg lottery company backed by Apollo Global Management Inc. is considering a Milan initial public offering this year that could raise $1 billion, according to people familiar with the matter.
The people said that Lottomatica is working with banks, including UniCredit SpA, to evaluate the listing, which could take place as soon as the second quarter. The people asked not to be identified because the information is private, which is why it is considering a valuation of around $5 billion including debt.
The bonds of Lottomatica went up Thursday as investors reacted to the news. The euro's bond sales of €575 million due July 2025 jumped by as much as 1.6 cents to 97.6 cents, the highest since April.
Europe's IPO market shut last year after rising interest rates and heightened inflation pushed investors into risk-off mode. Some companies believe that pent-up demand for listings will help them get IPOs in the months ahead.
Lottomatica is active in Italy's regulated gaming market and is active in the online, sports betting and slot machine segments. The company hasn't set precise terms for the offering, and details of the share sale could change depending on market conditions.
Representatives for UniCredit, Apollo and Lottomatica didn't want to make a statement.
Sisal SpA, Italy's oldest betting company, also took a stab at listing on the Milan exchange before being bought by Flutter Entertainment Plc in a 1.6 billion $2 billion deal in 2021.
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