Fortuna's WSE debut seems to make good marketing sense Courtesy of Genesis PR

The first IPO by a bookmaker on CEE stock exchanges is set to take place this month. Czech company Fortuna Entertainment is expected to start trading on the WSE on October 28.

The betting firm also plans to debut on the Prague Stock Exchange on October 27.

“The entry into the Prague and Warsaw capital markets is a fundamental milestone for our company,” Jiri Bunda, chairman of the management board and CEO of the group, said in a statement.

Fortuna will make up to 18.2 million shares available at a maximum price per share of E4.5, setting the maximum value of the IPO at E81.9 million. The offer represents 35 percent of all shares, with company owner Penta Investments Limited retaining majority.

“This is a very good move from the point of view of marketing and publicity,” commented Janusz Grobicki, an expert at the Adam Smith Center, a Warsaw-based think tank.

In his opinion, being the only company from the gambling sector to trade on the Warsaw Stock Exchange could give Fortuna an important edge against its competitors on the market.

No big investment has been announced for the Polish market, with Fortuna stating that proceeds from the share issue would serve to fund the launch of a lottery in the Czech Republic in 2011.

But according to Mr Grobicki, although the Polish gambling sector has suffered from restrictions introduced by a recent gambling law, its growth potential is high.

“The current climate is not so good. But the new law has mainly affected small gambling salons, and I think that for investors with a real knowledge of the market the Polish gambling sector can be very attractive,” he said.

Fortuna Entertainment does not operate online betting services in Poland but operates 364 outlets devoted to sports betting.