Extra £4m windfall for Betfair Pair

 
Steve Dinneen
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BETFAIR founders Andrew Black and Ed Wray will pocket an extra £3.6m between them after shares in the firm rocketed following its IPO.

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 in its first day of trading.

The mechanism obliged Black, a former professional gambler, and Wray, an ex-City trader, to sell a further 10 per cent of their holding in the firm, earning them £1.9m and £1.7m respectively.

This is on top of the £14m and £17m 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 per cent.

This is comprised of the 15.2 per cent floated last week, an additional 1.6 per cent floated through the over-allocation mechanism and approximately 30 per cent already owned by staff and small shareholders.

The total over-allocation sum is worth £22.8m before the deduction of underwriting commissions and expenses.

The shares floated last week were worth £233.7m.