Caesars Debuts With Massive Pop: Investor Trap Or True Value? |
| Forbes - Feb 8, 2012 |
After many years and a failed attempt to go public, Caesars Entertainment made its market debut on Wednesday, its shares surging more than 80% as investors piled into the small offering. Taking a page from tech IPOs, Caesars only offered a tiny portion of its company, about 1.45% of shares outstanding, forcing a massive pop and incredible volume, with nearly 10 million shares changing hands.
Investors, though, were asking themselves who is buying the stock. Caesars has more than $22 billion in debt outstanding and still owns no properties in Macau, the fastest growing gambling market in the world. Big rivals like Las Vegas Sands and Wynn Resorts already derive most of their revenues from their Asian operations.
Still, Wednesday’s price action was impressive. Caesars raised about $16 million by selling 1.8 million shares at $9 a piece. According to the prospectus, the company’s total capitalization is $20.8 billion, while Bloomberg notes Caesar’s enterprise value is $22.5 billion, or 11.8 times adjusted earnings. At the time of writing, Caesars market capitalization was just over $2 billion, given the reported 125 million shares outstanding. The stock is listed on the Nasdaq under ticker CZR.
Read Full Article from Forbes
- Posted: 2012-02-08 14:18:27
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
