XLMedia upsizes IPO, shares soar on first day of trading

XLMedia has demonstrated that an IB / affiliate business model can be the base for a successful IPO.


Gaming affiliate XLMedia (LON:XLM) has completed its IPO on the London Stock Exchange, and it was an absolute blowout. After raising more money than planned, and at a higher valuation (see table below), XLMedia saw a 37% first day IPO ‘pop’, as its shares rose from 49 pence to close Friday at 67 pence. XLMedia is now valued at about $211 million.

In the first six months of 2013, XLMedia had Revenues of $16.0 million and EBITDA of $7.2 million (page 11 of the IPO prospectus), meaning that they are roughly valued now at about 6.6x Revenue and 14.7x EBITDA.

Adding to these nice valuations based on Friday’s stock price, during trading on Monday afternoon shares plowed through the 70 pence to touch all the way up to 71.62 pence. Online gaming affiliate XLMedia’s IPO was a success by all accounts. They beat their fund raising and valuation forecasts by a significant margin.

Results are summarized in the table below:


Will Forex IBs and Affiliate businesses follow suit and be inspired by the success of this IPO? Back on March 10, LeapRate noted: “if XLMedia is successful in its IPO quest, we believe that Forex IBs with similar business models might also take a look.” It is encouraging watching the success of the IPO in its initial days. Can the model XLMedia is deploying to funnel and capture traffic to the gaming companies be something Forex IBs and Affiliates look to mimic on a grander scale so they too can float sometime in the near future?

XLMedia is looking to plow forward…”It said will use the proceeds to fund acquisitions and country-specific joint ventures as well as for investment in its information technology systems.” XLMedia operates 2,000 websites in 17 countries and sends traffic to some of the biggest online gaming companies in the world who share in the revenue on all closed business. “Our admission to AIM represents a major step forward for our business as we seek to capitalise on a number of high growth opportunities that exist across our business,” said Chief Executive Ory Weihs in a statement.

To see the complete XLMedia IPO prospectus click here.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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