Cirsa debuts on the Stock Exchange trusting to reduce its debt and accelerate its expansion

The executive president of Cirsa, Joaquim Agut, could not hide his smile during the traditional bell ringing that marked the stock market debut of the Terrassa-based multinational entertainment and leisure company. Nor could the widespread anticipation in the room be hidden, completely packed with investors, advisors, bankers, and executives from the multinational who had come from different countries around the world. Attendees who sought to immortalize the historic moment with their mobile phones, aware that this debut not only marked a milestone for the Catalan company, but also for the emblematic building of the Barcelona Stock Exchange, where this bell ringing is not very often heard.

In fact, the stock market debut of the entertainment company represents the second major operation of this year, after that of HBX (Hotelbeds) in February, and the first on the Catalan Stock Exchange in 14 months, after the debut of the historic cosmetics and beauty company Puig, which debuted in May of last year. The Catalan family company, which went public with a valuation of 13.9 billion euros ---representing the largest debut in the European stock market all year--- thus broke a streak of several years without bell ringing in the Paseo de Gràcia building, which had not witnessed such a moment since Fluidra's debut in 2007.

Cirsa's debut, although more moderate than Puig's, with an initial valuation of 2.52 billion euros, represents a historic moment for the company, especially after a path that has not always been linear. After several attempts and announcements of intention to list ---the last of which, in 2017---, Cirsa has finally managed to debut on the stock market with a price of 15 euros per share. A starting price that its executive president has described as "competitive," trusting that it will go "upwards" in the coming months.

"After 47 years of history, we feel totally prepared to take this step, which will allow us to consolidate our global position as an international company, as well as reduce our debt, to generate maximum value for our clients and shareholders," Agut emphasized. The executive president also made a point in his timed speech, before starting the countdown to the bell ringing, to remember Terrassa, the city that saw the company grow and consolidate, as well as Jordi Ballart, the city's mayor, present on this historic day for the company.

The origins of Cirsa ---commercial name of Cirsa Gaming Corporation--- date back to 1978, when Manuel Lao, a resident of Terrassa, began designing and manufacturing recreational machines for hotels. Just a few years later, Cirsa acquired its first casino in Marbella, and quickly expanded its presence in Spain. In the 90s, the Catalan company made the international leap with the acquisition of a casino in the Dominican Republic. After more than four decades of experience, it currently operates in 11 countries and manages more than 400 casinos and a total of 83,000 machines, through a team of 15,000 employees.

The company has entered the stock market with only 18% of its capital, while the vast majority of the shareholding remains in the hands of the US fund Blackstone, a fund that bought the capital from Lao seven years ago. The entry into the continuous market comes after, in its previous fiscal year, the company registered a significant decrease (of more than 84%) in net profit, going from 80 million euros to 12.6 million, while its turnover grew by 8%, reaching 2.150 million euros.

With this operation, Cirsa aims to raise 400 million euros, placing more than 26.6 million new shares on the market. During the moments immediately after the bell ringing, the share price registered a moderate increase of 6.67%, climbing to 16 euros, before returning to around the initial value (15 euros).

Agut, who described its stock market debut as "successful," celebrated the market's "great interest" and assured that demand was up to "eight times higher" than the available shares. The executive chairman also confirmed that up to 250 international investors participated in the operation, including, according to Agut, big names such as the North American fund BlackRock or banks Santander, Bankinter, and the Norwegian Norges.

With its IPO, Cirsa wants to accelerate its growth plans and international expansion, as well as reduce its debt, which stands above 2.3 billion euros. Despite this debut, Agut assured that the company's values and strategic plan do not vary, and will continue to adapt to new times, technologies, and trends, as they have already done by diversifying their business with sports betting and online games. "We are convinced that well-managed leisure and entertainment have a legitimate and positive role in society," Agut stated.