Some info for you all..
Tattersall's shareholders tipped to win
July 5, 2005 - 6:34PM
Shares in gaming giant Tattersall's Ltd are expected to open at a healthy premium when the company hits the boards on Thursday in the Australian stock market's biggest listing this year.
Tattersall's is expected to announce the final price of its shares to be paid by institutional investors on Wednesday, after an institutional bookbuild closed on Tuesday.
The initial indicative price range for the new Tattersall's shares for institutional investors was $2.40 to $2.90 per share.
But after strong demand, the indicative range was lifted to $2.90 to $3.20, said Tattersall's chief financial officer Ray Gunston.
"It (demand) has been good," he said.
Mr Gunston said the allocation of shares to institutional investors and retail investors was under way.
Tattersall's will have 700 million shares on issue, with the retail application price capped at $2.90.
Only 105 million new shares were available to retail and institutional investors, the rest going to the beneficiaries of the will of company founder George Adams and to Tattersall's staff.
Tattersall's has indicated that at least 10 million shares will go to the general public.
Last month, Tattersall's closed its offer of shares to retail investors five days early due to "overwhelming demand", which it said reflected the confidence of the public in the company.
The final price for institutions may be above the retail application price but in that case retail applicants will still pay $2.90. All institutional bidders will pay the final price.
Tolhurst Noall broker Marcus Padley said in a newsletter to clients that some people were suggesting that Tattersall's shares could open at $3.70 to $3.80.
He said there were suggestions that the forecasts in Tattersall's prospectus were deliberately conservative.
"Either way, the liquidity issue will ensure a healthy stag (short-term) profit for anyone lucky enough to get the stock," Mr Padley said.
At $2.90 per share, Tattersall's will have a market capitalisation of $2.03 billion, putting it among the top 100 companies on the stock exchange.
Tattersall's holds Victoria's sole licence for lotteries and along with Tabcorp Holdings is one of two operators of gaming machines outside of Melbourne's Crown Casino. Tattersall's operates about 13,500 pokies machines in Victoria.
The company also operates lotteries in Tasmania, the Northern Territory and the ACT and holds a 10 per cent share in the national lottery of South Africa.
Tattersall's has said that listing on the stock exchange will give it greater access to funds for expansion.
The company expects to concentrate on expanding its core competencies but wants to diversify and expand geographically in the longer term.
The company also needs to be more transparent to help its efforts to retain its valuable gaming and lottery licences.
The Victorian government is currently reviewing the structure of the lottery licence, which expires in June 2007. The state government will also review gaming licences, which expire in 2012.
Tattersall's is forecasting total revenue of $2.52 billion for the year ending June 30, 2006, with total earnings before interest, tax, depreciation and amortisation (EBITDA) of $228.8 million.
For the year ending June 30, 2005, total revenue is forecast at $2.41 billion and EBITDA of $244.0 million.
Tattersall's has said that forecast EBITDA for fiscal 2006 would have shown some growth were it not for the recent introduction of a higher health benefit levy on gaming machines by the Victorian government.
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