The Star raises US$405m through entitlement offer
The casino operator has completed the institutional component of its A$1.20 per share entitlement offer.
Australia.- The Star Entertainment Group has announced that it has completed an institutional entitlement offer. The move raised AU$595m (US$405m) at AU$1.20 per new share. The offer reportedly attracted strong support from both new and existing shareholders with a take-up rate of 94 per cent.
New shares that would have represented the entitlements of ineligible institutional shareholders and those in respect of institutional entitlements not taken up under the Institutional Entitlement Offer were offered and placed to institutional investors. The settlement of new shares is expected to take place on March 6, with issuance and ordinary trading expected to commence on March 7.
The new shares will rank equally with existing shares on the issue. The Star’s trading halt has been lifted, and its shares resumed trading on February 24.
Group CEO and managing director Robbie Cooke said: “We are extremely pleased and appreciative of the support we have received from both our existing shareholders and new investors.
“The capital structure initiatives announced yesterday, 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.”
The Star posts revenue of US$690.11m for H1
The casino operator has reported gross revenue reached AU$1.01bn (US$690.11m) for the first half of the financial year 2023, up 75.6 per cent on year-on-year terms.
Queensland properties performed strongly, achieving record domestic revenues. However, the performance of The Star Sydney was negatively affected by stricter operating restrictions from mid-September onwards as a result of the Adam Bell SC’s inquiry and changes to the NSW Casino Control Act.
The Star Sydney revenue was AU$541m (US$368.56m) for the period, up 127 per cent year-on-year. Normalised EBITDA was AU$87.4m. The Star Gold Coast revenue was AU$276m (US$188.03m), up 53 per cent from the prior-year period, while normalised EBITDA was AU$66.2m. Treasury Brisbane revenue was up 22 per cent to AU$196m (US$133.53m), with EBITDA of AU$46.1m.
See also: The Star appoints Scott Saunders as chief risk officer
