Blackstone's Spanish gambling operator Cirsa priced its initial public offering at €15 per share on Monday, valuing the casino giant at €2.5 billion ($2.93 billion) as it prepares to list on Spanish stock exchanges after months of market uncertainty.
The offering comprises 30.2 million shares worth approximately €453 million, with €400 million raised from newly issued shares and €53 million from existing shares sold by Blackstone subsidiary LHMC Midco to cover taxes and restructuring expenses. Trading will commence on the Barcelona, Bilbao, Madrid, and Valencia stock exchanges, subject to regulatory approval.
The IPO includes a customary over-allotment option allowing joint global coordinators to purchase up to 4.5 million additional shares within 30 days of trading1. Morgan Stanley, Barclays, and Deutsche Bank are managing the offering, with additional bookrunners including BBVA, Jefferies, Mediobanca, Societe Generale, and UBS23.
Cirsa plans to use the proceeds to accelerate its growth strategy and reduce leverage, targeting a net debt-to-EBITDA ratio between 2.0x and 2.5x post-IPO4. The company has earmarked €400-500 million for mergers and acquisitions over the next three years4.
The timing follows robust financial results. Cirsa reported 2024 EBITDA of €699 million on net revenues of €2.15 billion, marking an 11% year-over-year increase in profitability12. First-quarter 2025 revenue grew 12.5% to €576.7 million3.
The company operates more than 400 locations across 11 countries, including Spain, Italy, Panama, Colombia, Peru, and recently Portugal34. Online gaming now represents 22.7% of total revenue, surging 54.8% from 2024 levels1.
Originally scheduled for April 2025, the IPO was postponed due to global market volatility and geopolitical tensions following policy changes in early 20251. The delay allowed Cirsa to strengthen its balance sheet through €280 million in debt refinancing, reducing leverage from 3.8x to 3.4x EBITDA2.
Blackstone acquired Cirsa in 2018 for an undisclosed sum, with founder Manuel Lao Hernández stepping down as chairman while retaining operations in Argentina3. The IPO represents the first major listing in Spain since HBX Group raised €725 million in February4.
"Today, we are taking a defining step to continue writing another page in this extraordinary history of growth," CEO Antonio Hostench said when announcing the IPO plans5.
