This story was published more than 9 years ago.
Perhaps predictably Betfair's London IPO this month has turned out to be a runaway success. With prelisting orders passing expectations and the share price soaring this week on the first day of trading to reach a peak of over £15.
So successful has the listing proved that an extra allocation of shares worth £22.8 million was put on the market this week, further enriching founders Andrew Black and Ed Wray.
City AM reported as the week ended that Morgan Stanley, acting as stabilising manager, triggered an over-allocation clause after shares in the betting exchange jumped from the float price of £13 to over £15.
The mechanism obliged Black, a former professional gambler, and Wray, an ex-City trader, to sell a further 10% of their holding in the firm, earning them £1.9 million and £1.7 million respectively. This was in addition to the £14 million and £17 million already cashed in by the pair, who founded the firm 10 years ago.
Other stakeholders, including Charlton Acquisition and Balderton Capital also sold more shares, increasing the percentage of the firm available on the market to 46%.
This is comprised of the 15.2% already floated last week, an extra 1.6% floated through the over-allocation mechanism and approximately 30% already owned by staff and small shareholders.
The total over-allocation sum is worth £22.8 million before the deduction of underwriting commissions and expenses.
The shares floated last week were worth £233.7m.
Source: InfoPowa News
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