Lasseters Holdings Ltd. is attempting to raise A$40 million for a proposed expansion into Europe and Asia by offering 40 million shares at $1.00 each. The stock offering includes 10 million existing shares and 30 million new shares. The offering gives Lasseters a market capitization of $117.5 million on listing on the Australian Stock Exchange with the current shareholders retaining 66 percent of the equity.
The offering is expected to open April 3 and close on April 19, 2000. Shares will probably be listed on the ASX in early May.
"The funds will enable Lasseters Online to capitalize on its first mover position within the global Internet gaming market," said David Ohlson, Lasseters Online general manager. "There is still enormous potential to increase the Group's share of this rapidly growing market, particularly in Europe and Asia where Internet usage is rising rapidly.
"We are concentrating on using innovative online marketing techniques to attract new players and encourage existing players to return. We plan to invest $6.4 million in international marketing between July and December this year. We will also launch the second generation of design for the site which will introduce new games, graphics, and streamlined navigation."
Other ventures may include WAP phone development and digital television convergence, according to Asia Pulse. Funds raised through the offer would also be used to retire debt, Ohlson said.
Lasseters Online, Australia's first regulated online casino, was launched in April 1999. By January 31, 2000, it reported turnover of more than $40 million, monthly compound revenue growth of 41 percent and more than 34,000 players from 190 countries.
Lasseters expects net profit after tax to fall from $1.8 million in 1998-99 to a loss of $1.1 million in 1999-2000 due to the initial operating costs and amoritized development costs for Lasseters Online. A sharp turnaround is expected for 2001, however, with Lasseters Online potentially generating $14.5 million in revenue.