The stock market's recent volatility has led to a restructuring of Australian online casino operator Lasseters' initial public offer. The amended submission will seek to raise up to $30 million, offering a maximum of 40 million new shares at 75 cents per share.
This structure represents a 25 percent discount to the original offer price of $1.00 per share. The original offer sought to raise $40 million by issuing 30 million new shares and by selling 10 million shares held by the existing shareholders.
"We are sensitive to the expectations of future shareholders. The re-pricing of the offer should make it more attractive to a broader base of investors," said Peter Bridge, managing director. "The company combines the stability of the Alice Springs hotel casino with a successful, established, online casino. This clearly differentiates Lasseters from the pure technology companies on the market."
A new prospectus with an extended date is being issued for prospective investors. Additionally, Macquarie Equity Capital Markets Limited is no longer underwriting the offer. The new underwriter was not named.
The government's proposed moratorium on issuing Internet gaming licenses shouldn't affect Lasseters growth potential, according to Bridge. "Even if the moratorium is introduced, there would be no change to Lasseters' existing online operations given the company already holds a licencs," he said. "It may make it more difficult for new entrants in the market."