But the Star Entertainment share price isn't responding positively. It's falling 1.32% at the time of writing to trade at $1.50.
It's also worth noting today marks the first time the market can respond to the company's $1.3 billion first-half loss, also revealed yesterday.
Let's take a closer look at what's going on with the embattled S&P/ASX 200 Index (ASX: XJO) casino operator.
Star completes institutional raise, gears up for retail offer
The Star Entertainment share price returned to trade on Friday, quickly falling into the red after completing the institutional component of its capital raise.
That comprised a $115 million institutional placement and the institutional element of a $685 million entitlement offer, each offering new shares for $1.20 apiece. The latter allowed existing investors to buy three new shares for every five already owned.
It saw strong support from both existing and new investors, with a take up rate of around 94%. That included $80 million of binding pre-commitments from strategic partners Chow Tai Fook Enterprises and Far East Consortium International.
Star Entertainment CEO Robbie Cooke commented on today's news, saying:
The capital structure initiatives announced yesterday, including the placement and entitlement offer, will provide The Star with a strengthened balance sheet to deliver on its key strategic priorities and to meet the capital requirements provisioned for.
The company plans to use the raised capital to repay debt and increase its liquidity. It boasts $754 million of pro forma liquidity and $341 million of net debt as of the end of December.
And retail investors wanting to bolster their position in Star Entertainment shares for $1.20 apiece won't have to wait long to do so.
The retail component of the company's entitlement offer – expected to be worth $205 million – will open on Thursday and run until 13 March.
Star Entertainment share price snapshot
The Star Entertainment share price has taken a major tumble in recent months. It's currently down 17% year-to-date as challenging trading conditions weighed on its earnings.
Looking further back, the stock has tumbled 54% over the last 12 months amid a massive fine and the suspension of its Sydney casino license.
For comparison, the ASX 200 is 5% higher year to date and over the last 12 months.