Online internet betting exchange Betfair has opened books on its planned flotation, valuing the company at up to £1.5 billion (€1.7 billion).
The company's owners are hoping to cash in on increased investor appetite for riskier assets such as shares, with markets at six-month highs.
The company said it planned to offer shares at between £11 and £14 each, with some of its largest owners pledging to sell at least 10% of the company.
The company expects to announce a final price for the offer on October 22 and if the market debut is successful, Betfair could join London's FTSE 250 index of mid-range stocks.
Betfair offers person-to-person betting, largely in sport. It allows customers to place bets as a punter or take bets in the role traditionally played by a bookmaker.
The company was founded 10 years ago by Andrew Black, a former professional gambler, and former JP Morgan trader Edward Wray, who jointly own 22.5% of the business.
The price range implies a valuation for the core gaming business of between 21 and 28 times its forward earnings, a source said. Other gambling companies such as Paddy Power and PartyGaming trade closer to 16 times.
But bankers hope the sale will be get fillip from improving market sentiment following a recent pick-up in European share issues and listings.
The company will not issue new shares and did not confirm how many existing shares will be sold in the offer.
