April 27, 2016 / 3:15 PM / 3 years ago

Casino operator Red Rock Resorts falls in market debut

April 27 (Reuters) - Shares of Red Rock Resorts Inc fell 5 percent in their debut on Wednesday, valuing the Las Vegas-based casino operator at $2.14 billion.

The company’s initial public offering of 27.25 million shares was priced at $19.50, the midpoint of the expected price range of $18-$21. The IPO raised about $531 million.

The stock, which opened at $18.50, touched a low of $18.25.

Red Rock is the sixth company to go public in the United States in April after months of choppy trading discouraged investors.

The company is controlled by brothers Frank and Lorenzo Fertitta, who took the company private in 2007 in a deal valued at $5.4 billion. At the time, the company operated under the name Station Casinos.

Station Casinos filed for bankruptcy in 2009, under the burden of debt from the leveraged buyout and a struggling Las Vegas economy. It emerged from bankruptcy in 2011 with the Fertitta brothers retaining control.

Following the offering, Fertitta family entities will hold about 87 percent of combined voting power.

Proceeds from the IPO will go largely to the Fertitta family. Red Rock has total debt of about $2.2 billion.

Red Rock’s net revenue rose 4.7 percent to $1.35 billion in the year ended Dec. 31, from a year earlier. (Reporting by Sruthi Shankar in Bengaluru; Editing by Maju Samuel)

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