Cyprus: Megabet Readies For IPO

Lorys Charambolous, Tax-news.com, Cyprus

26 March 2001

The Executive Chairman of Megabet, George Pyrishis, has announced that the offshore betting firm plans to make its debut on the Cyprus Stock Exchange. Pyrishis has told the Cypriot press that Megabet will issue 20 million shares of a 10 cent nominal value at a price of 28 cents per share of which 3 million shares will be on offer to the general public. He said the company had received irrevocable applications for the remaining 17 million shares that were offered to institutional investors, associates and agents.

The driving force behind Megabet's IPO is its ambitious plan to expand abroad with particular emphasis on its Internet operations. The firm has signed licensing agreements with Canada which will host Megabet's server and Antigua for when it creates an Internet casino. For its European and Greek customers Megabet has launched an information web site, www.beto.gr, to provide live scores and updates on football and basketball games in English and Greek with plans to offer sports and gaming news in Chinese at a later date. The firm has also opened an office in Hong Kong offering betting services by telephone and plans are underway to open further offices in Singapore.

Megabet has 74 betting shops based on Cyprus with market share of 50%. According to Pyrishis this makes Megabet the biggest betting firm operating on the Island. He said: 'It all depends on the geographical spread and the success of not allowing the shops to overlap each other.'

Megabet says it is going from strength to strength and anticipates a turnover from its Cypriot-based operations of around CY£10m this year compared to CY£7.38m in 2000. After tax profits are expected to be in the region of CY£1.64m up to the end of July this year. A year ago after-tax profits were CY£1.41m.

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