Here's how to do an online flotation. In contrast to the underwhelming response to Ocado's listing, Betfair is looking like a roaring success.
Shares in the internet betting exchange were priced at £13 each - at the top end of the original guidance. This values the business, which has 3m registered users and processes more than 5m bets a day, at £1.39bn. Existing shareholders sold 16.2m shares in the flotation - 15.2% of the company - with the possibility of more being disposed of, if there is more demand. That means they will raise at least £210.6m from the sale.
And it hasn't ended there. In conditional dealings the shares have soared to £15.24, a 17% premium to the offer price. At their best they reached £15.60.
Betfair was founded ten years ago by former JP Morgan trader Edward Wray and one-time professional gambler Andrew Black.
