Telematic raised BGN 16m in the first Bulgarian IPO for 2022

Telematic Interactive Bulgaria EAD

Telematic Interactive Bulgaria EAD

Telematic Interactive Bulgaria, operator of online casino and betting platform Palms Bet (top 3 in Bulgaria), raised BGN 16m via the first IPO for 2022 on the Bulgarian Stock Exchange (BSE). The company managed to successfully place 80% (320k shares) of the offered 400,000 shares at the minimum price of BGN 50 per share set in the pre-established price range. The share subscriptions exceeded 400 orders.

With the attracted capital, the first company in the gaming sector on the BSE realized the largest initial public offering since 2018 when Gradus managed to attract nearly BGN 41m. The implied market capitalization of Telematic is BGN 216 m.

In addition, this is the first IPO since 2020 on a regulated market, after all seven new listings in 2021 were realized on the BEAM growth segment of BSE, raising a total of nearly BGN 25 m.

New markets

Telematic plans to use the newly acquired funds to enter new markets – Peru and Ukraine in particular, with expectations to soon launch online operations in the Latin country. The group has had an office in Peru since 2008 and since 2019 has been expanding in the region through its company CT Interactive, which produces games and digital gambling content.

Telematic has recently been operating in Kenya, and is about to enter the European market through its B2B segment – distributing the company’s digital gambling content to other online betting platforms.

Dividend policy

At the realized price per share of BGN 50 the company will be trading at P/E of 10. Telematic’s plans also include to distribute at least 40% of the 2021 net profit in the form of a dividend, implying a yield to investors of 4.13% considering the IPO price.

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