- Tabcorp (TAH) has completed the retail part of its underwritten one-for-11 renounceable entitlement offer
- The company is seeking to raise around $600 million in total through the combined institutional and retail offers
- Around 35,000 retail shareholders took part in the offer and raised approximately $102 million
- The remaining 56 per cent of shares on offer will be auctioned in a variable price bookbuild with a floor price of $3.25 per share
- The funds raised will be used to strengthen Tabcorp’s balance sheet, providing greater financial flexibility in uncertain times
- Tabcorp closed Tuesday’s session 2.01 per cent lower at $3.41
Tabcorp (TAH) has completed the retail component of its underwritten one for 11 renounceable entitlement offer.
The company is seeking to raise around $600 million in total through the combined institutional and retail offers.
Shortfall
Around 35,000 retail shareholders elected to partially or fully take up their entitlements, which raised approximately $102 million. That total represents around 44 per cent of the shares on offer.
The remaining shares will be auctioned in a variable price bookbuild with a floor price of $3.25 per share.
The retail shortfall bookbuild will be conducted after market close today, Tuesday, September 15.
Settlement is expected by Friday 18, with shares to be issued on Monday 21.
Next steps
According to Tabcorp Managing Director and CEO David Attenborough, the money raised is “expected to strengthen Tabcorp’s balance sheet, provide greater financial flexibility in uncertain times, and provide additional credit metric headroom for covenant and rating purposes.”
“The continued significant uncertainty regarding the severity and duration of the COVID-19 impact has led Tabcorp to reconsider its previous capital management targets in order to improve its credit metrics and conserve more capital over time,” David said.
“We remain confident that the strength and resilience of Tabcorp’s diversified portfolio of businesses will allow Tabcorp to manage current market challenges and we continue to focus on executing strategies to create value for shareholders.”
Tabcorp closed Tuesday’s session 2.01 per cent lower at $3.41.