PartyGaming announced today it expects a valuation of around US$9bn when it lists at the end of the month, over US$1bn lower than the firm was hoping to achieve.
PartyGaming had been hoping to achieve a market valuation of more than US$10bn, but a statement issued today [15 June] predicted an initial share price in the range of 111p-127p giving it a mid-range valuation of US$8.6bn.
If that valuation were achieved it would make PartyGaming the largest listed egaming firm by some distance and make it one of the 100 largest listed companies in the UK.
But it will be some way below the initial target price of US$10bn attatched to the listing.
And the drop in price is believed to have come on the back of concerns expressed by institutional investors over Party's exposure to the US market.
Around 90% of Party's poker revenues come from the US, and with the legality of online poker still unclear, investors have called for a discount to be applied.
The Financial Times also reported concerns the firm's growth targets are too ambitious in an increasingly competitive market.
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