Shareholders of Tabcorp Holdings Limited (ASX: TAH) have watched the stock plummet 11.6% today, falling to just $4.58 after the gambling and entertainment stock went ex-dividend. Meanwhile, the group also completed the retail component of its $236 million capital raising.
So What: Tabcorp shares went ex-dividend today, meaning that those investors holding the shares yesterday will be entitled to a total of 40 cents per share, fully franked. While that includes a 10 cent interim dividend, the company also declared a 30 cent special dividend as a way to return excess franking credits to shareholders.
To fund the special dividend, Tabcorp also offered eligible retail shareholders one new share for every 12 held at $3.70 per share. According to the company's presentation, that price implied a 13.1% discount to the theoretical ex-rights price when adjusted for the impact of the interim and special dividends.
In an update to the market today, the company said that entitlements to approximately 7.7 million new shares were available for purchase under the retail shortfall bookbuild after having not been taken up by shareholders. These shares are being sold for a total of $4.52 each, which includes the $3.70 offer price in addition to $0.82c per entitlement to each new share.
