Bingo hall chain Gala has taken steps towards a stock market flotation after it held a series of meetings with banking advisers, it was reported today.

The business, which is owned by private equity firms Cinven and Candover, could be valued at up to £1.8 billion if it chooses to go ahead with a listing, which may take place at the end of this year.

The speculation over an initial public offering (IPO) grew after the Financial Times said the company held a “beauty parade” of potential banking advisers.

The removal of uncertainty following the passing of new gaming legislation earlier this week is also likely to have encouraged Gala.

The new laws remove the need for bingo and casino players to join clubs 24 hours before playing, while Gala will be allowed to roll over prize money.

Gala, which was once owned by leisure group Bass, last changed hands in March 2003 when it was bought from CSFB private equity for £1.24 billion.

The company recently refinanced its debt and said in January that its 166-strong chain of bingo halls had posted a 7.2% hike in sales to £55 million, while like-for-like sales were 6.8% higher in the seven weeks to January 7.

The casinos arm, which operates 29 sites in the UK, the Isle of Man and Gibraltar, saw sales rise by 5.7% to £16.5 million and by 3% on a like-for-like basis. Total group sales for the year to September increased by 17.9% to £544.4 million.
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