July 3 (Bloomberg) -- Lotto24 AG, the state lotteries broker spun off from Tipp24 SE, soared on its first day of trading in Frankfurt as its former parent declined.
Lotto24 closed at 3.45 euros, 38 percent higher than the offer price of 2.50 euros. The company traded for the first time after Tipp24 shareholders approved the spinoff last month. Tipp24 fell 2.1 percent to 38.30 euros, the eighth consecutive decline, for the longest falling streak since it went public in October 2005.
“Lotto24 worked as a dividend in kind,” Sascha Berresch, an analyst at Hauck & Aufhaeuser AG in Hamburg, said by phone today. “It’s possible that some investors only bought Tipp24 shares to get at the Lotto24 stock and now they are dumping them.”
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