Internet casino firm 888 plans $500 mil. IPO

September 1

888 Holdings Plc, one of the the largest Internet gambling casino operators,  announced its plan to sell about $500 million of stock in a preliminary public offering as the company's owners cutback their stakes and tap demand for Internet gambling companies.

888 hired HSBC Holdings Plc to control the sale. Bankers think the Gibraltar-based Internet gambling company may possibly be worth around $1.5 billion when it sells shares in London this month.

At this rate, the Internet gaming industry could stand to double gross earnings to upwards of $24 billion in the year 2010, up from $12 billion from 2005.

In other IPO news, shares of PartyGaming have gained 36% since its initial offering back in June through yesterday's close. The company is now worth $11.4 billion (US).

888 says it may use its listed stock to pay for acquisitions. The company reported a 30% gain in first-half profit to $24.5 million. Earnings rose 48% to $123.7 million.

Obviously, like most other Internet gaming companies that have gone public, thecompany wants to me  a market leader. Is is reported that marketing and advertising 888's brand cost the company $51 million in the first half of 2005.

888, which has never made a purchase, is also looking for takeovers. It is said that the Internet gaming industry will consolidate from more than 1,000 global players to less than 100 over the next 5 to 6