Betfair IPO hopes to raise up to £1.48bn

Sports betting company reported to have grown into the biggest service of its kind in the world.

Online sports betting company Betfair hopes to raise between £1.16bn and £1.48bn from its planned initial public offering at the London Stock Exchange.

The company decided to price its shares between £11 and £14, after its shareholders approved the IPO move on Wednesday night. At this price range, say reports, the company would enter the FTSE 250 index.

The final price of the shares will be announced on 22 October.

According to the Times, the IPO will float about 10 per cent of the stock, but more shares could be issued if demand is strong.

The ten-year old sports betting company, which allows people to bet against each other online without a bookmaker's mediation, is reported to have grown into the biggest service of its kind in the world.

Betfair was founded by Edward Wray, a former JP Morgan trader, and Andrew Black, former professional gambler, who together own 22.5 per cent of the business.