The video game company is seeking to raise capital to finance its expansion plan and pay down debt, and its shares will be listed on Spain’s main stock exchange.

• Cirsa made public its plan for an initial public offering (IPO) valued at €460 million.
• This IPO combines two components: a €400 million primary share issue and a €60 million secondary share placement.
• Submission for listing on the Automated Quotation System depends on the current market situation and approval from Spain’s Comisión Nacional del Mercado de Valores (CNMV).

Cirsa announced that it will seek to list its ordinary shares on stock exchanges in Barcelona, Bilbao, Madrid, and Valencia. The total offering is split between a €400 million primary raise and an estimated €60 million secondary sale. Through their official announcement, Cirsa explained that the main share issue will boost capital for business expansion and help lessen the company’s debt. Meanwhile, LHMC Midco will handle the secondary sale, which is specifically intended to pay the required taxes and expenses associated with reorganizing management shareholdings.

Cirsa Announces IPO Plans Amid Strong Growth and Global Expansion Strategy

The company is currently operating in 11 countries, including Spain, Italy, Morocco, and several fully regulated Latin American markets. Pending both market conditions and CNMV’s agreement, shares are supposed to start trading on the Automated Quotation System. LHMC Midco is also giving an overallotment option to the Joint Global Coordinators, who are managing the transaction on behalf of the Joint Bookrunners.

It’s worth noting, Cirsa showed a 12.5% year-on-year increase in revenue, reaching €576.7 million. From the €400 million primary capital, Cirsa will use approximately €375 million, mainly for expansion and repayment of existing debt. After closing the deal, Cirsa estimates that its net leverage ratio will decrease to approximately 2.7 times EBITDA by May 31, 2025. For the secondary sale, no cash will be paid to any current or past management members, except to cover taxes and costs.

After the IPO, those with management investments will have their stakes directly held in Cirsa, not through other structures. CEO Antonio Hostench commented: “Innovation defines our company: we connect physical and online channels as one. By declaring our plan to go public, Cirsa marks a milestone to keep expanding, kick-start new projects, and strengthen our leadership position in the industry.”