Caesars Entertainment Corporation (NASDAQ: CZR) just amended its filing to still show its price range of $8.00 to $10.00 per share and the IPO is extremely odd in that the company is only selling an aggregate of 1,811,313 shares in the IPO. This was somewhere around a $15 billion leveraged buyout at the peak of the private equity craze.
The net proceeds from this offering (without the overallotment option exercise) will be approximately $13.1 million. The capitalization is being shown as adjusted for this offering and that is a whopping $20.8265 billion in actual data and listed as being $20.8396 in adjusted data for the offering. The figure of $1.16 billion in cash and cash equivalents after the offering is said exclude restricted cash of $544.0 million.
Use of funds: “We intend to use the net proceeds from this offering for general corporate purposes, including development projects and maintenance capital expenditures.”
What seems to be happening is that the private equity owners are merely establishing a market for Caesars. This allows the funds to benchmark some more firm implied market value. If the private equity funds start to sell into the market, it will be at many multiples of this latest 1.811 million shares. Otherwise, it might be 500 to 1,000 different selling times before the funds are out.