Blackstone successfully takes Cirsa public – Shares begin with significant price increase in Barcelona

7/10/2025, 2:21 PM

Cirsa achieves a valuation of €2.5 billion in its IPO in Spain – and becomes an exception in the weak market.

Eulerpool News Jul 10, 2025, 2:21 PM

With an increase of up to 6.7% at the start of trading, the Spanish casino operator Cirsa made a significant mark on the sluggish European IPO market on Tuesday. The initial price was €16, corresponding to a market capitalization of €2.7 billion, above the issue price of €15. At times, the price settled at €15.20.

Cirsa, which is majority-owned by Blackstone, brought 26 million shares to the market and raised €400 million in fresh equity. With a free float rate of around 18%, the IPO is one of the largest in Spain this year. If the greenshoe option is fully exercised, the issue volume could increase to up to €521 million.

The interest of institutional investors was high. The books were reportedly filled "in no time," according to sources. The offering comes at a time when several planned IPOs, including another Blackstone company, Hotel Investment Partners, have been postponed due to tense market conditions.

The IPO marks a return to the public for Cirsa, which was founded in Spain in 1985 and acquired by Blackstone in 2018 for around €2.1 billion enterprise value. Since then, the gambling company has invested around €1.2 billion in more than 130 acquisitions – most recently in Apuesta Total in Peru and Casino Portugal.

In 2023, Cirsa achieved revenues of €2.2 billion (+8%) and an EBITDA of €699 million (+11%). By going public, the company aims not only to accelerate its growth but also to reduce its net debt, currently at €2.37 billion. The original Blackstone investment was backed by approximately €1.5 billion in debt. Two years later, an additional loan of €400 million was taken to distribute a special dividend to the investor.

From the Blackstone environment, it is said that the IPO brought the fund more than 2.5 times its invested equity. The valuation is based on the business model: Cirsa aims for €400-500 million for further acquisitions over the next three years—about 100 takeover candidates are on the list, mainly in Spain and Latin America.

The industry is also currently providing tailwind: Shares of Lottomatica, another private-equity-led gambling company from Italy, have risen by over 80% since the beginning of the year. The British competitor Rank Group has seen an increase of over 65%, supported by regulatory easing in the home market. An investor who joined Cirsa commented: "The upside potential is not spectacular - but the model is solid and scalable.

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