Succesful IPO for New Online Gambling Group

October 12 - The listing show on the London Stock Exchange just keeps on rolling. This time around its a completely new company listing. They have nothing else but an apparently attractive strategy, a relationship with Microgaming and a head honcho with experience in online gambling.

What makes this IPO even more interesting is that it is the first new entrant to list as what essentially can be described as nothing but a cash shell. We've seen this for years in other industries, but is is a landmark in online gambling.

Fairground Holdings says it will use the finances raised to acquire online casino, sports betting and bingo sites.

And the market seems to love the story. They raised , GBP 3.8 million the the price jumped by 150% from 50 pence to 150 pence on the first day. The company has cash assets of GBP 8 million.

It somehow defies all logic when big cash generating groups are getting a hammering from the market. It is going to be very interesting to see what acquisitions they make. This will be key for this positive market sentiment to continue.

The group is lead by Evan Hoff, who was co CEO of what is now Belle Rock Gaming, probably the largest Microgaming operator, and they seem to have Microgaming's support which could be the key ingredient.

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