Sky City raising $178 million, sticks with profit guidance

Sky City has announced a placement of 71 million shares, to raise $178.9 million.

Sky City Entertainment Group has announced a placement of 71 million new shares today to raise at least $214.9 million, and says it is "comfortable with annual profit forecasts."

The shares were fully underwritten at $2.52 each, compared with their last trade at $2.85, although the final price would be determined through a book-build.

The casino operator said it was carrying out the share placement to strengthen its balance sheet, reducing debt, and enhance its financial flexibility.

Sky City was on track to comfortably meet forecasts of annual profit between $99m and $106m, on the basis of current market conditions, the company said.

- NZPA