SkyCity Entertainment Group raised about 70 percent of the $263 million it's seeking for expansion in a share sale to institutional investors, and will offer the remaining shares to retail investors.
The Auckland-based company said it sold about $180 million of shares to institutional investors as part of a capital raising last week. Eligible investors paid $4.40 apiece to buy one new share for every 10 held, with the shortfall taken up at $4.85 apiece.
Retail investors will be offered about $83 million of shares at $4.40 apiece on Tuesday, with a retail bookbuild for institutional investors scheduled for June 7 to mop up any shortfall.
New Zealand's only listed casino company is raising the funds to enable it to keep debt in check and maintain its credit rating while funding expansion in Auckland and Adelaide, after ruling out asset sales, changing its dividend policy, or issuing hybrid debt.
The $4.40 share price for the fully underwritten offer was set at a 12.8 percent discount to the five-day volume weighted average price of $5.04 on May 10, ahead of the capital raising. The company's shares came out of a trading halt on Monday and slid 1.9 percent to $4.86.
The stock is rated 'hold' according to the average of six analyst recommendations compiled by Reuters.