Worldspreads IPO Raises GBP 5.77 Million

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AIM launch goes ahead on schedule

The anticipated launch on the London AIM of Irish spreadbetting company Worldspreads went ahead on schedule this week, raising GBP 5.77 million through a placing at 47p a share. The issue valued the company at GBP 19 million, providing funds for expansion.

WorldSpreads was formed in Dublin in 2000 and opened a London office in 2005. By March this year it had a client list of 1 936, and in the year to March, the company generated revenues of Euro 6.58 million and reported an operating profit of Euro 530 000.

CEO and co-founder Conor Foley remarked: “The spread-betting sector is growing rapidly. Having put in place the infrastructure in Dublin and London, we believe that the increased profile and additional funding our listing on AIM brings will provide an opportunity for us to grow a substantial business.”

Foley added that the placing had been several times over-subscribed. “The response we have had from the market during the placing has been tremendous,” he added.

In January of this year, the company began offering foreign exchange and futures and options products via a joint venture with Regent Partnership, also through its London office.

The firm has joint ventures and revenue sharing relationships in Spain, South Africa and Hungary. In South Africa, the company has entered into a partnership with South African tote organisation Phumelela to offer a version of the company’s Sportspread product.