Paddy Power Betfair parent Flutter Entertainment said it has raised £812.6m through a placing of over eight million shares.

The company said a total of 8,045,995 new ordinary shares in the company were placed by Goldman Sachs International and Davy at a price of 10,100 pence per share, raising gross proceeds of £812,645,495. 

Flutter said it was pleased by the "strong support" it had received from new and existing shareholders for the placing. 

The new shares represent about 5.5% of Flutter's issued share capital immediately prior to the placing (excluding treasury shares). 

The placement came three weeks after Flutter completed its $6 billion merger with Stars Group that also added the Sky Bet brand to the group. 

Flutter said in its statement yesterday that Fox, which bought a 4.99% stake in Stars in May last year for $236m, would increase its investment in Flutter as part of the placement but did not say how many shares it was acquiring. 

Flutter also said yesterday that its revenue in the second quarter so far has increased by 10% from a year earlier, despite widespread ongoing disruption to global sports.

The company said it believes that the current operating environment is likely to result in longer-term changes to the sector landscape which will lead to further opportunities. 

"The placing will better position the group to move quickly to capitalise on such opportunities should they arise, accelerating its four-pillar strategy and consolidating its market leadership positions," it added.

The company said it believes that one possible consequence of the Covid-19 pandemic is that the pace of regulation in the US could accelerate as a growing number of states look to new ways to raise additional sources of tax income. 

The group said it will therefore look to invest to secure additional market access deals in individual US states, adding that it also plans to increase investment to improve its competitive position in the online landscape as more customers move to bet online.