Caesars IPO Debuts With 80 Percent Stock GainCZR Opens 1.8 Million Shares At $9.06 |
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Caesars Entertainment (CZR) opened on the Nasdaq Wednesday morning at $9.06 a share and has since seen wild swings that have resulted in a 80-percent climb. The stock, which accounts for just over 1.8 million shares, or 1.4 percent of its shares outstanding, is now trading at $16.18, down from a high of $17.90, as of the time of this writing.
The shares, though limited in number, are moving quickly. According to the Wall Street Journal, the shares have been moved nearly 8 million times. Part of the reason for the quick exchange is because private investors can dump some shares since the stock is now trading publicly. About 19 percent of the company could potentially be sold overall.
Caesars, formerly known as Harrah’s, was taken private four years ago for $31 billion, but has returned to the market today for its initial public offering (IPO) to raise $16.3 million. Yahoo! Finance is reporting that underwriters will also receive a 30-day option to purchase up to 271,697 additional shares at the initial price.
Though the gain has been promising to a company that has mounted $22 billion in debt, some analysts are warning that the growth is merely a byproduct of a short supply, not an overwhelming demand. According to Fortune, Caesars first attempt at an IPO filed to raise $575 million, or 35 times what today’s effort will yield.
The casino giant was purchased in 2008 by Apollo Management and TPG Capital. The private equity firm currently owns 70 percent of Caesars under the name Hamlet Holdings.
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