Institutions pay small premium to mop up remaining shares in SkyCity capital raising
Retail shareholders took up about $49 million of the $85 million.
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Institutional investors have paid a small premium to mop up remaining SkyCity Entertainment Group [NZX: SKC] shares that weren't taken up in the casino company's one-for-10, $263 million capital raising.
Retail shareholders took up about $49 million of the $85 million they were offered in the retail component of the offer at $4.40 a share, and the remaining $36 million was raised from institutions in a bookbuild at $4.66 a share, the Auckland-based company said in a statement. That's a smaller premium than for the institutional component of the sale, which was taken up at $4.85 apiece. The shares last traded at $4.62 on the NZX before being halted. The offer price was a 12.8% discount to the five-day volume weighted average price of $5.04 on May 10, ahead of the capital raising.
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 stock is rated 'hold' according to the average of six analyst recommendations compiled by Reuters.
(BusinessDesk)
Jonathan Underhill
Wed, 08 Jun 2016
Wed, 08 Jun 2016
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Institutions pay small premium to mop up remaining shares in SkyCity capital raising
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