Donaco falls on share placement plan, but analysts remain bullish on future

    Published in: Latest IntelligenceShares in Australia-listed Donaco International (DNA.AX) retreated last week after the company announced plans to raise funds through a share placing, though analysts remain bullish about the casino company’s prospects.The company, which is operated by two nephews of Genting Bhd Chairman KT Lim, said it has received binding commitments from investors to raise A$75 million ($69.2 million). The placement will take place in two tranches and involves a total of 56.39 million shares priced at $1.33 apiece.The first tranche will be composed of 26.75 million shares, or 15 percent of the enlarged capital, while the sale of the remaining 29.64 million shares will be subject to shareholder approval.Donaco stock gave up 4.6 percent to A$1.45 over the week, even after recouping some ground with a 3.6 percent increase on Wednesday. The volume of shares changing hands was 38 percent more than the one-month daily average.Still Donaco...

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