SkyCity halts trading amid capital raise talks
The casino operator is working to finalise a potential US$129m capital raise.
New Zealand.- SkyCity Entertainment Group has requested an immediate halt in the trading of its ordinary shares and corporate bonds on the NZX and ASX. The pause is intended to maintain order while the company finalises a possible capital raise and prepares to publish full-year results on August 21.
The Australian reports that the casino operator is seeking to raise around AU$200m (US$129m) from institutional investors to help reinforce its balance sheet. The company stressed that no final decision has yet been made and that the details of any offer remain under consideration.
It said the trading halt would initially last one trading day, but may be extended if the capital raise proceeds. As of its most recent update, the company carried net debt of NZ$722.4m (US$426m), against a market value of roughly NZ$692m (US$409).
SkyCity faces a softer earnings outlook, heavy debt levels and ongoing regulatory scrutiny. In May, the operator warned that group EBITDA was expected to come in about 4 per cent below its previous guidance range due to weak consumer spending and a slower return of tourists. For 2024, the group posted a net loss of NZ$143.3m (US$84m).
Earlier this month, SkyCity’s Adelaide casino was cleared to continue operating after an independent review found the venue suitable to hold a licence, despite identifying significant shortcomings in governance, anti-money laundering, and host responsibility practices. The South Australian regulator emphasised that further oversight and potential enforcement action remain on the table.
