THE online gaming company 888 Holdings yesterday confirmed its intention to pursue a stock market flotation in London that could value the firm at up to $1.5 billion (£817 million).

The Gibraltar-based group, which has changed its name from Cassava Enterprises, accompanied the announcement with the appointment of Marie Stevens as non-executive chairman ahead of the float.

Ms Stevens served on the Gaming Board for Great Britain between 1999 and 2003 and acted as general counsel to Hilton Group, the owner of Ladbrokes, for ten years.

John Anderson, who is chief executive of 888, said that the company had decided to pursue an initial public offering (IPO) to enhance its profile and brand recognition while giving it the fire power to pursue acquisitions.

“The industry has reached a stage where consolidation will be the name of the game over the next 18 months and we want to be there and take it forward,” Mr Anderson said. He is expected to receive a stake of about 1 per cent when the shares are listed.

There have recently been suggestions that 888 could use an IPO to make a bid for PokerStars, the internet poker operator that is about to move its licence from Costa Rica to the Isle of Man. Following the succesful flotation of PartyGaming, PokerStars is considering a flotation.

A float would crystallise huge fortunes for the two Israeli familes that control the company. Avi and Aaron Shaked own about 70 per cent, while the Ben-Yitzhak family owns about 23 per cent. Shay Ben-Yitzhak is the only one of the founders on the main board.

The IPO is expected to take the form of a placing of about 25 per cent of the shares with institutional investors. HSBC is the sole bookrunner, sponsor and co-ordinator, while Bridgewell, Panmure Gordon and Numis will be co-lead managers.

The company’s websites include 888.com, PacificPoker.com and Casino-on-Net.com.

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