Strong demand for Sky City share offer

Sky City Entertainment Group's share purchase plan closed 2-1/2 times oversubscribed and will be scaled back.

The company said today it received $87.5 million in applications for the share plan, through which it sought to raise up to $35 million.

Sky City also received $10.1m in applications for a top-up offer, for which the maximum sought was $8m, and they will also be scaled back.

The $43m raised through the plan and offer took to $228.3m the amount raised recently by the company, including $185.3m through an institutional share placement last month. In all three cases the issue price for shares was $2.61.

Sky City chief executive Nigel Morrison said the company continued to be in a strong financial position and was well placed to take advantage of future opportunities, both in terms of capital management and other opportunities that may arise.

Sky City shares were down 5c around late morning to $2.80.

- NZPA