Harrah’s Entertainment to File for IPO
Harrah's Entertainment
Harrah’s Entertainment, the Las Vegas based casino company has announced its intention to launch an initial public offering (IPO) in order to raise funds for ongoing projects in Vegas and Ohio.
The company is reported to be assessing public markets as the gambling industry in Las Vegas begins to recover and plans to sell around $575 million in shares. The profits created from the IPO will be used by Harrah’s to fund three different projects. The first of these is the development of a new retail and entertainment complex on the Las Vegas Strip. The other projects are the completion of a hotel tower at Caesars Palace and a joint venture in Ohio.
Harrah’s announcement follows some much needed good news for the Las Vegas casino industry, as revenue on the Strip increased by 21% in August, and comes after $511 million being raised by MGM Resorts International in a similar share sale.
However, Harrah’s has not been doing so well, as it currently carries a debt of more than $20 billion, which is set to extend in to 2015. In addition to this, Harrah’s second quarter figures showed a loss that’s believed to be caused by gamblers cutting back.
In order to counter this, Harrah’s Interactive Entertainment has been created to operate online gaming products. So far, online software supplier Gamesys has been charged with supplying products that include poker and bingo products as well as an online casino.
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