Cirsa IPO on Hold as Blackstone Reacts to Market Uncertainties
Late last month, we reported that the private equity firm, Blackstone, may consider introducing initial public offering (IPO) for Cirsa, the leading Spanish gambling company. Going public on Madrid’s stock exchange may raise between $746 million and $1.1 billion for 20% or 25% of its shares.
However, while Cirsa was expected to go public at some point in April, the timeline has now changed. While Blackstone still plans to proceed with the IPO, the company reportedly anticipates delaying the introduction of shares amid market uncertainties pushed by the current geopolitical context.
Cirsa’s IPO Expected to Be Completed in Q2
This week, the Spanish media outlet, Expansión, suggested that Blackstone may consider a delay in going public with Cirsa’s shares on the Madrid Bolsa. Despite initial expectations, the timeline for the IPO now seems to be pushed toward after Easter, or the second quarter of the year. It is unclear whether or not further delay may be encountered and if Blackstone may consider going public with Cirsa at some point in H2.
Reportedly, the prime reason behind the unexpected delay is market uncertainties caused by the current geopolitical landscape. That is the direct result of the protectionist policies announced by the US President, Donald Trump, the latest report suggests.
If the present market conditions may prove unfavorable, Blackstone’s decision to delay going public with Cirsa is sensible. In that line of thought, better market conditions may allow the company to raise upwards of $1 billion, which is a mind-boggling sum.
Tariffs Cause Market Fluctuations
The announced tariffs for Mexico, Canada and China, by Donald Trump, resulted in dips across a range of stock markets. The 25% tariff on all goods combined with the increased rates on aluminum and steel exports from the EU further exacerbated the issue.
The potential tariff war between the US and Europe resulted in a 9% dip of the S&P 500 in the last month. This translates to trillions of market value lost due to the uncertainties in geopolitical context.
