NOVOMATIC Group has cancelled its plans for an initial public offering (IPO) due to regulatory uncertainty in its core markets of Germany and Austria.
The company’s CEO Harald Neumann announced NOVOMATIC had decided: “the regulatory environment in Europe is still not clear enough for [investors] to rely on the figures.”
The flotation was thought to have attracted around E6bn for the heavily diversified global gaming group. Although Neumann added there is no weakness in the company’s finances, and it’s unlikely now an IPO will be explored again for the next two to three years.
“Having grown a lot over the past few years, we will this year focus on increasing synergies between companies and, correspondingly, on more effective internal structures,” added Neumann.
“Nevertheless, we will continue to watch the market and make purchases, where it makes sense.”
The group as a whole has seen strong growth in recent, primarily through strategic acquisitions. The company now has 300 shareholdings, around 230 of which are consolidated in the balance sheet.
On 5 January this year, the finalisation of the majority holding in the Australian industry giant Ainsworth Game Technology Limited marked “a significant milestone” in the its history, the firm said.
Initial calculations indicate the NOVOMATIC Group will generate an accumulated revenue of E4.8bn in 2017.