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Cyprus-based software firm Playtech has begun plans for a possible listing on the London Stock Exchange (LSE).
Playtech has met with advisers in London over potential exit plans with an initial public offering (IPO) believed to be a favoured option.

One City source said the firm was looking at a possible listing on the LSE as soon as November.

But a spokesperson for Playtech played down the rumours saying the firm had no plans to list before the end of 2005.

A seperate source close to Playtech said a trade sale was also a possibility.

He added the firm will be closely watching the market reception of casino firm 888 Holdings, which started marketing for a September listing this week.

The 888 flotation will be viewed as a bellwether for the egaming industry, and could potentially delay or cancel some IPOs being considered for later this year.

It will be the first significant test of market appetite for egaming stocks following the share price tumble of PartyGaming last week.

Shares fell by a third following the firm’s revised forecasts for growth in the poker sector.

Software firms have also suffered share price wobbles in recent months, with CryptoLogic’s value falling during 2005.

But Playtech is likely to present a strong growth story with the firm adding several major clients in the past year, most notably the recent addition of Empire Online.

Analsyts said the firm could potentially claim a valuation in excess of that attached to rival software firm CryptoLogic of £195m.