Betfair prices up share flotation

Online sports betting business Betfair has priced its share flotation on the London stock market, in move which values the total company at £1.4bn ($2.2bn).

The sale of 15.2% of the company took place at a price of £13 per share.

The 16.2 million shares in the gambling firm were sold towards the top of the £11-£14 planned range.

Betfair was founded 10 years ago, and says it is the world’s largest business of its kind.

The shares rose to £15.60 in early conditional trading, up 20% from the initial public offering price.

The existing shareholders have the option to allot an additional 10.8% of the company to meet surplus demand from the offering.

Betfair has three million customers and pioneered person-to-person betting, where punters bet against each other rather than the bookmaker on a range of sports.

The company was founded by Andrew Black, a former professional gambler, and Edward Wray, a former JP Morgan trader.

The site also offers poker and other traditional casino betting forums.