BETFAIR’S hopes of achieving a valuation above £1.4bn in its upcoming float have received a blow from a rival online bookie.
Bodog was forced to slash its odds on Betfair failing to hit the sum after a rush by shrewd punters. Bodog initially offered 8/11 on the IPO failing to hit £1.4bn but was forced to cut the price twice, first to 1/2 then to 1/3.
The bookie also reported a number of customers setting up accounts especially to place bets against Betfair reaching the figure, seen as a warning sign in the industry.
A Bodog spokesman said: “We have had 182 bets on the downside compared to just 22 on the upside. For a bet this niche this is quite a lot. Having a lot of experience in this industry I’m pretty certain these people will turn out to be right.
“We even had people setting up multiple accounts so they could get three bets at the maximum of £500 a bet.”
The world’s biggest online betting exchange is not planning on raising new capital in the flotation but will put a minimum of 10 per cent of the company on the market through the sale of shares of existing stakeholders.
It expects to announce its pricing after its annual meeting next month.