Caesars' Shares Rise 79 Percent in First Day of Trading
Caesars Entertainment Corp.'s shares increased 79 percent on Wednesday in its first day of trading on the Nasdaq, after the company sold a small fraction of its stock to investors, reported The Wall Street Journal.
The Las Vegas-based company's stock opened at $9.06 a share on the Nasdaq—slightly above its initial public offering price of $9. It then spiked to $16.07 in early afternoon trading.
Caesars said late Tuesday that it expected to raise approximately $16 million from the offering before deducting costs, reported the Associated Press.
In 2007, Apollo Management Group and Texas Pacific Group paid $17.1 billion and assumed $12.4 billion in debt to take the company formerly known as Harrah's Entertainment private.
Harrah's first filed to go public in October 2010. The company intended to raise as much as $575 million, but later reduced that goal to $530 million and subsequently canceled the proposal due to market conditions. Resuming its IPO plans in November, the company expected to raise about $50 million.
After deducting bank fees and expenses, Caesars sold 1.8 million shares for $9, or about 1.4 percent of its shares outstanding, making the stock vulnerable to significant price moves as it traded, reported the Journal.
Caesars owns, operates or manages 52 casinos—most of them operating under the Harrah's, Caesars and Horseshoe brand names. Caesars also owns the World Series of Poker and the London Clubs International family of casinos, states its website.