SkyCity announces capital raising plan

New Zealand-listed SkyCity Entertainment intends to raise NZ$263 million of new equity from its shareholders to “fund future growth projects”.

In a filing to the New Zealand Stock Exchange, the casino operator said the net proceeds from the offer will be used to repay bank debt and reduce gearing, in order to support the funding of future capital expenditure commitments in Auckland and Adelaide.

Under the offer, eligible shareholders are entitled to acquire 1 new share for every 10 existing shares at an application price of NZ$4.4 per new share.

In March, the casino operator reported normalized revenue and earnings for the group up 10.2 percent to NZ$562 million for the six months ended Dec. 31, 2015, according to an interim report.

Normalized EBITDA was up 15.4 percent to NZ$178.2 million and normalized NPAT was up 28.2 percent to NZ$85.4 million.

SKYCITY’s Auckland casino saw normalized revenue up 7.4 percent to NZ$324.9 million, whilst its Darwin operations reported a 6.9 percent decline in revenue.