PointsBet targets US growth as share issue concludes
PointsBet has raised more than AUD$85m (£45.5m/€52.7m/USD$58.8m) from its share issue as it seeks expansion in the US market.
The bookmaker, which has operations in Australia and the US, saw its share price rise today as it recommenced trading on Sydney’s Australian Securities Exchange (ASX) after the announcement just last week that it was seeking to raise AUD$122.1m through a fully underwritten capital raising comprising an institutional placement and entitlement offer.
PointsBet, which has licences in New Jersey and Iowa, said there was strong support from new and existing shareholders who raised $60m at $3.60 per share, 12.5% above the entitlement offer price of $3.20. It offered a 1 for 6 fully underwritten pro rata accelerated renounceable entitlement offer with retail rights trading.
The institutional entitlement offer raised approximately $25.9m, which was short of its $60m target. In total it raised $85.9m.
PointsBet said the funds will be used to support marketing and client acquisition, technology and product development and balance sheet flexibility. It will also assist US business development including market access and government licensing fees and sportsbook fitout costs.
Last week PointsBet reported a 138% year-on-year rise in turnover during the first quarter, primarily due to its launch and subsequent expansion in the US.
Turnover for the three months to 30 September 2019 amounted to USD$235.8m, representing a significant increase on $99.1m in the corresponding period last year. Higher spending among customers also pushed net revenue for the quarter up 138% on a year-on-year basis from $5.0m to $11.8m, according the operator's revenue update.
For its core Australian business, turnover rose 66% to USD$164.4m, with net win more than doubling to $12.6m.
PointsBet raised A$75m after listing its shares on the ASX in July 2019. It sold a total of 37.5m shares at an issue price of AUD$2 each.
By the close of trading today (4 November) its shares were worth $4.30 compared to $4.04 before the announcement of the share issue last week.