The Star raises AU$800m in equity for Queen’s Wharf Brisbane
The Star’s partners in the casino project contributed to the equity raise.
Australia.- The Star Entertainment Group has raised AU$800m (US$530.8m) in fresh funding for its under-construction Queen’s Wharf Brisbane casino resort. Its Hong Kong-based partners, Chow Tai Fook Enterprises and Far East Consortium International, have provided binding pre-commitments for around AU$80m, which equates to their functional pro-rata entitlement.
The equity raising exercise includes a “three for five” entitlement offer on Star Entertainment’s fully-paid ordinary shares. The retail component of its accelerated non-renounceable entitlement offer raised approximately AU$203m at AU$1.20 per new share.
Approximately 169.5 million new shares will be issued under the retail entitlement offer and are expected to be allotted on March 20, with trading to begin on the Australian Securities Exchange on March 21.
According to the casino operator, approximately 10,100 valid applications for retail entitlements were received, for approximately AU$107m, representing a take-up rate by eligible retail shareholders of approximately 53 per cent.
The new shares will rank equally with existing The Star shares on issue. The exercise is expected to help The Star achieve a strengthened balance sheet and meet its capital requirements.
The Star’s chief executive officer, Robbie Cooke, commented: “We are extremely appreciative of the support we have received from our retail shareholders who have participated in the Retail Entitlement Offer.
“As conveyed at the time of the institutional entitlement offer completion, the capital structure initiatives announced on 23 February 2023, including the Placement and Entitlement Offer, will provide The Star with a strengthened balance sheet to deliver on its key strategic priorities and to meet the capital requirements provisioned for.”
