ASX-listed gaming firm Tabcorp Holdings Ltd (ASX:TAH) has raised some $238 million from institutional investors and is now set for the retail component of its entitlement offer worth $190 million.

Defying analysts expectations that the de-merger of its gaming businesses will not bode well for Tabcorp because of licensing issues, it went on with its plan.

It reported that its institutional offering was even oversubscribed, the company statement said. Tabcorp manages Australia's biggest in high stakes gaming businesses.

"Tabcorp says the institutional bookbuild was significantly oversubscribed with the bookbuild clearing price coming to $7.30 a share, $1.05 over the $6.25 offer price," it said in a company filing before the Australian Stock Exchange.

The offer attracting very strong demand from Tabcorp institutional shareholders, the company said, with eligible shareholders taking up more than 95 percent of the shares available as part of the offer.

In a statement, CEO Elmer Funke Kupper said the strong response received for the offer highlights a compelling investment case for a demerger of the company's casino business from its wagering, gaming and keno businesses.

Tabcorp earned $469.5 million for the year to June 30, 2010.