US-based Harrah's Entertainment has announced an initial public offering to raise around $500m.
The company said on November 5 that it would offering 31.25m shares of common stock to be listed under the name Caesars Entertainment Corporation.
The stock will be listed on the Nasdaq Global Select Market under the symbol CZR. Hedge fund manager Paulson & Co is also planning to sell $710m of stock in the company.
The proceeds of the IPO will be used to fund growth projects and for general corporate purposes. The announcement came as Harrah’s announced a 0.3 per cent increase in third quarter revenues, largely due to the company’s acquisition of Planet Hollywood in February.
Income from operations for the third quarter was $175.7m, compared with a loss from operations of $1,050.2m in the same period last year. Loss from continuing operations, net of tax, for the third quarter 2010 was $163.2m compared with $1,621.0m. Revenues for the first nine months of 2010, meanwhile, declined 1.6 percent to $6,697.6m from $6,808.3m.
"Revenue rose slightly during the third quarter," said Gary Loveman, Harrah’s chairman, president and chief executive officer. "Although visitation also increased slightly in certain markets, including Las Vegas, and there are signs consumer spending may be stabilising, we’re continuing to exercise cost discipline while pursuing innovative ways to provide rewarding customer experiences. We have targeted $129m in additional expense reductions for the 2010 fourth quarter."
