Float values Chinese lottery firm at £130m
A CHESHIRE company which operates lotteries in China is to float with a market value of £130m.
DJI Holdings, based in Mobberley near Knutsford, was founded by former investment banker Darren Mercer, and plans to use the £15m proceeds of the float to fund working capital, settle outstanding payments on recent acquisitions, make further acquisitions and also to raise its profile.
DJI develops and distributes lottery products, including its own recently-launched lottery websites and those it builds for third-parties, and lottery ticket fulfilment services to large online and offline retailers.
The firm has raised £9m by placing nine million ordinary shares at 100p each and a further £6m from convertible loan notes. The shares are to start trading on Thursday.
Mr Mercer, chief executive, said: “In addition to raising the profile of the business internationally, the listing provides us with acquisition capital. The placing will provide us with funds to support our planned growth and complete some recent acquisitions as well as the resources to invest in a newly signed key partnership with a Government-owned partner.”
He added: “In June we achieved gross sales of in excess of £80m, which reflects the positive impact of the 2014 Football World Cup. After adjusting for this exceptional event, we continue to trade in line with our expectations.”
Manchester-based corporate finance house Rickitt Mitchell advised the company, along with law firm Eversheds, and accountancy firm Deloitte.
