November 19th, 2010 – by Glen Farmer
Harrah’s Entertainment Inc. had been planning an initial public offering on stock, but they have scrapped the idea. Market conditions have been cited as the reason behind the pulling of the IPO.
According to Reuters, the stock listing has been delayed because there were concerns that the price would be too high on the stock.
Harrah’s was expected to release the the stock under the name Caesers Entertainment Corp, and the price per share was expected to be between $15 and $20 per share. Harrah’s stated in a press release that the liquidity earned through the stock offering would go toward the development of new projects.
This comes after a net loss of $165, posted by Harrah’s for the third quarter.
The IPO was expected to ease the company’s debt. Harrah’s sports nearly $20 billion in debt. Approximately $531 million was expected to be raised in the IPO, which would contribute to the overall expansion and stabilization of the company.
More than 50 casinos in seven countries are operating through the Harrah’s. The company has contemplated attempting to offer real money online casinos in the United States, but this plan has not yet come close to fruition despite the enormity of funds that could be generated, as federal laws in the United States essentially prevent licensed online casinos.