PointsBet Raises $294 Million to Fund US Expansion
PointsBet (OTC:PBTHF) said today it’s raising $294.17 meg inwards upper-case letter to fund elaboration inwards the rapidly growing US market.
The Aussie sportsbook manipulator is marketing equity through and through a location of new shares and a rights issue. Goldman Sachs and MST Financial are managing the transaction. As is par for the trend with cap raises of this nature, the divvy up sale is occurring at prices below market value.
For example, the common soldier emplacement is priced at A$10, a more than 11 percent price reduction to PointsBet’s Wed closing price. The entitlement sleeve, which will rear $136 million, is priced at A$8. The common soldier position is geared toward institutional investors, while the entitlement dealings is for the operator’s littler retail shareholders.
Share sales are typically dilutive to electric current investors. But PointsBet is sounding to provide some shelter to devoted long-term investors. The companion went public inwards Sydney inward 2019, with the shares rising to a greater extent than fivefold since and so due, inwards big part, to the operator’s power to found a US footprint.
PointsBet Bold US Ambitions
Separate from the part sale, PointsBet reported financial 2021 results today, and it’s sluttish to reckon wherefore the operator is keen to spread out in the US. For the financial twelvemonth finish June 30, revenue jumped nearly 154 percent. But the operator’s US numbers were regular to a greater extent remarkable.
In the world’s fastest-growing sports betting market, PointsBet’s add up handgrip climbed 458.4 percent to $1.79 billion, spell receipts and net win from each one increased 481 percent. PointsBet CEO Sam Swanell sees a prominent opportunity in the US, offering upwards a combined iGaming and sports wagering forecast for Second Earl of Guilford America that’s considerably inwards nimiety of some of the more bullish estimates.
The North American sports betting and iGaming market could follow a $54 billion revenue chance past 2033, and our strategy is to persist in to put to go a top off Little Phoebe participant inwards this market,” said Swanell.
Noting that the capital letter evoke positions PointsBet to execute on that strategy, Swanell said the companionship is aiming for at to the lowest degree 10 percent market portion out inwards the North American regions inwards which it’s operational.
Aiming for Big Growth
Currently, the Aboriginal Australian society has licenses to course online sportsbooks in sextuplet states — Colorado, Illinois, Indiana, Iowa, Michigan, and New Jersey — and internet casinos in ii states. New Jersey, the top off iGaming marketplace in the country, is I of those two. For the to the highest degree lately completed financial year, New Jersey, Illinois, and Hawkeye State were the company’s biggest US markets, as ranked by revenue.
By the cease of 2022, PointsBet is aiming to be operating(a) inward at least 19 Frederick North American states and provinces. The fellowship is preparation to be a player inward Canada, too, which lately approved single-game sports betting.