Report: Dabble exploring US or Australian IPO
Operator hopes to quadruple revenue by 2027 as bosses lay out M&A exit possibilities, according to documents obtained by The Australian
Dabble is exploring an IPO in either the US or its native Australia as management are expecting revenue to hit A$500m (£257m) within three years.
As revealed by The Australian newspaper, the operator is thinking about going public in the coming years after revenue for 2024 hit A$117m, up from A$47m in 2022.
The six months to August 2024 saw Dabble report more than A$10m EBITDA across Australia and the US.
According to a shareholder document, management said that the Nasdaq represented the “most natural exchange for Dabble to consider”.
Bosses also noted that a listing on the Australian Securities Exchange was being considered, with an IPO Down Under potentially coming within the next 18 to 36 months.
Dabble said: “We are currently exploring possible IPO pathways with both Australian and US advisers, and the early feedback is that Dabble could make for a promising IPO prospect.”
Dabble currently has an Australian market share of about 2% and aims to double that within three years.
The document continued: “We expect that number to be 5 per cent-plus by 2027. While advertising reform is likely in Australia, our view is that recreational punters will continue to seek betting as a form of entertainment, and that the best product will win in the end. Dabble is well placed to be resilient to any changes.”
It was also claimed that the 5% Australian market share target could be applied to the US, where Dabble launched a DFS product that has acquired more than 850,000 users.
Market penetration into the UK, Brazil and Canada were also highlighted as options by bosses within the shareholder note.
Dabble also noted that any move to sell the business would be best explored after 2027 as it was an “attractive acquisition target to a relatively large pool of potential suitors”.
Dabble, which counts Yolo Group founder Tim Heath and Tabcorp as investors, has carved out a strong niche by positioning itself as a sports betting app combined with social media elements.
Players can follow other punters, copy bets, watch weekly streams hosted by Dabble athlete partners and engage in ‘banter channels’.