Betting shop chain William Hill has side-stepped weak stock markets after scoring with an initial public share offering that attracted strong demand at the height of World Cup fever.
The share offer was more than 10 times subscribed and the stock leapt seven per cent above its 225-pence issue price as soon as it began trading today. The offer price was in the top half of the indicative range of 190-240p set on May 29th and valued the business at £949 million.
William Hill, which has over 1,500 shops and also offers telephone and online betting, plans to use the £340 million of new money it raised to cut debt and buy up small, independent outlets among Britain's 8,500 betting shops.
The company tops a growing list of European firms bringing their shares to market despite a dismal few months for equities. Those waiting in the wings include the property management arm of Italy's Pirelli, Spanish gas distributor Enegas and Italian fashion group Prada.
The market for initial public offerings is struggling to find its feet after 18 months in the doldrums as equity markets tumbled in the global economic downturn.
Music retailer HMV and IT services firm Detica both had difficult births earlier this year, while DIY-chain Focus Wickes announced an indicative price range of 230-290p earlier today, below analysts' expectations.
But there have been success stories, with energy services firm Wood and quality control company Intertek trading at a premium to their flotation prices.