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Read Full BioBlackstone-backed gaming company Cirsa went public yesterday in Barcelona.
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.”
