Betfair, the UK-based online sports betting exchange, has announced its intention to float on the London Stock Exchange (LSE), which is set to value the company at £1.5bn.

It is hoped the listing will enable the company develop its international operations and expand its business at an accelerated rate, in addition to helping with the retention of management and employees. Betfair currently has 14 "major investors" owning a 75 per cent stake in the company and expects more than half of the group to sell at least 10 per cent of the company as part of the floatation.

The remaining 600 shareholders, which hold 25 per cent, are also set to have the opportunity to sell shares, although the company has said that no new shares will be issued. Betfair chief executive officer David Yu said: "For ten years, Betfair has delivered sustained revenue growth and continued profitability, and this success, along with our debt-free balance sheet, underpins our confidence to continue investing in the many opportunities we see before us for the long-term success of the business."

Chair Edward Wray said: "Becoming a publicly listed company will provide Betfair with the heightened profile and enhanced transparency that will help us cement our long-term relationships with customers, regulators and business partners around the world." Neil Matthews, partner at international law firm Eversheds, said: "Sports betting may be a dirty phrase at present, particularly if you are a cricket fan, but stock market investors are likely to be enthusiastic about the latest on-line sports betting provider coming to market."