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Entain Shares Dropped 11.6% on a £600M Discounted Capital Raise

Analyst Team trader
Updated 14 Jun 2023

The Entain PLC (LON: ENT) share price fell 11.6% after revealing that it had raised £600 million via a discounted share placing where it sold 48,294,478 new ordinary shares of €0.01 each in the capital of the Company for £12.30 per Placing Share.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The price offered to participating investors represented a 6.9% discount to the company’s closing share price of £13.22 on 13 June 2023. The discount offered to the investors explains the decline witnessed in Entain’s share price today.

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The placing was conducted by Merrill Lynch International (BofA Securities) and Morgan Stanley & Co. International plc (Morgan Stanley), acting as joint global coordinators. Banco Santander, S.A. was also involved in the placing as a book runner. The three investment banks collaborated to ensure all the placing shares were bought. 

Retail investors also got to participate in the share offer through the PrimaryBid platform, where they bought 486,010 new ordinary shares at the placing price. On the other hand, the institutional investors bought 48,294,478 new ordinary shares leading to combined gross proceeds of £600 million. 

Entain spoke with its leading institutional investors before unveiling the share placement to ensure that it respects the principles of pre-emption through the allocation process insofar as possible. The company also noted that it received significant support from the institutional investors. 

The global sports-betting, gaming and interactive entertainment group intends to use the proceeds of the capital raise to partly fund the acquisition of STS Holding S.A. (STS), with the remaining amount being used to fund further near-term acquisitions.

The company has already written to the UK’s Financial Conduct Authority (FCA) and the London Stock Exchange (LSE) requesting the admission of the new shares to the premium listing segment of the Official List of the FCA and to trading on the main market for listed securities of the LSE. 

Entain will be subject to a 90-day lock-up period following the date of the Placing Agreement, subject to waiver by the Bookrunners and specific customary carve-outs agreed between the Bookrunners and the Company.

*This is not investment advice. 

Entain share price. 

The Entain share price fell 11.62% to trade at 1168.0p, from Tuesday’s closing price of 1321.5p.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.