SkyCity Raises NZ$240 Million in Retail Entitlement Offer with Modest Retail Uptake
SkyCity Entertainment Group has successfully completed a NZ$240 million equity raise through a fully underwritten entitlement offer, with retail shareholders subscribing to one-third of their entitlements. New shares will begin trading next week on both the NZX and ASX.
- Completed fully underwritten 1 for 3.35 pro-rata entitlement offer
- Total capital raised NZ$240 million including institutional and retail components
- Retail shareholders subscribed approximately NZ$15 million with 33% take-up rate
- New shares to commence trading on NZX and ASX mid-September
- Underwriters allocated unsubscribed shares to institutional investors
Equity Raise Completion
SkyCity Entertainment Group has announced the completion of its fully underwritten retail entitlement offer, raising a total of NZ$240 million. This capital raise combined an institutional placement and a retail entitlement offer, with the institutional component contributing approximately NZ$195 million and the retail portion adding around NZ$45 million in gross proceeds.
The entitlement offer was structured as a 1 for 3.35 pro-rata accelerated non-renounceable offer, allowing existing shareholders to maintain their percentage ownership by subscribing for new shares. Eligible retail shareholders took up about one-third of their entitlements, resulting in a 33% effective take-up rate, including some oversubscriptions.
Retail Participation and Underwriting
Retail investors subscribed for roughly NZ$15 million of new shares, with the offer allowing additional applications up to 60% beyond their entitlement. Shares not taken up by retail investors were fully allocated to sub-underwriters, including existing institutional shareholders, ensuring the offer was fully underwritten.
The new shares issued under the retail entitlement offer are expected to begin trading on the New Zealand Stock Exchange (NZX) on 11 September 2025 and on the Australian Securities Exchange (ASX) on 12 September 2025. These shares will rank equally with existing ordinary shares, preserving shareholder rights and dividend entitlements.
Strategic Implications
While the announcement does not specify the intended use of the capital raised, such a significant equity injection typically supports growth initiatives, balance sheet strengthening, or strategic investments. The moderate retail take-up rate may reflect cautious investor sentiment or a preference for institutional participation in this round.
SkyCity’s management expressed gratitude to shareholders for their support, signaling confidence in the company’s future prospects. The successful completion of this capital raise positions SkyCity to pursue its strategic objectives with enhanced financial flexibility.
Bottom Line?
SkyCity’s NZ$240 million equity raise closes a chapter on capital restructuring, setting the stage for its next strategic moves.
Questions in the middle?
- What specific projects or debt repayments will the capital raised be allocated toward?
- How will the moderate retail take-up impact shareholder dilution and future investor confidence?
- Will SkyCity pursue further capital raises or strategic partnerships following this offer?