Harrah's Cancels IPO: Analysts Suggest Share Prices Were too High
Harrah's Entertainment
Harrah’s Entertainment has cancelled its initial public offering (IPO), amidst alleged claims from analysts that the casino operator had priced it shares too high. It was believed that Harrah’s IPO could raise as much as $500 million (£313 million), however, the operator has now scrapped its plans, announcing its decision was due to unfavourable market conditions. Harrah’s was expected to launch its IPO on Thursday, but according to information from unnamed sources, there were concerns that shares may have been priced too high.
Back in 2008, Harrah’s was bought by private groups, TPG and Apollo, for $31 billion, just before the recession hit the casino industry. Since then, operators in Las Vegas and across the United States have struggled financially. According to a report from National Public Radio (NPR.org), a spokesperson for Harrah’s has suggested that the casino operator “is not commenting" on the IPO "beyond a brief statement announcing the cancellation and citing market conditions.”
Alongside its casinos in the United States, Harrah’s Entertainment also owns gambling venues in the U.K and manages the World Series of Poker (WSOP) tournaments.
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