Las Vegas Sands IPO disappoints in China
CASINO group Las Vegas Sands has seen lower than expected interest in the stock market float of its Macau business.
Sands China, an offshoot of Las Vegas Sands, raised $2.5bn (£1.51bn) through its initial public offering in Hong Kong, Chinese sources said.
That was at the bottom of the range hoped for, but will ensure that Las Vegas Sands can now push ahead with a massive investment in Macau, the world’s biggest casino market.
The $2.5bn raised from investors, together with $1.75bn in loans to the company, will go to restarting its Cotai strip project, which was suspended in November 2008 due to the global economic downturn.
Wynn Resorts, another Las Vegas casino group, recently spun off its own Macau unit.
Sands China sold 1.87 bn shares, or about 24 per cent of its enlarged share capital, at HK$10.38 (81p) each, compared with a range of HK$10.38 to HK$13.88, according to reports.
Gaming analyst Peter Pak of BOCI Research said: “Investors are cautious about investing in Sands China, because the post-market performance of Wynn Macau was disappointing.”
Shares of Wynn Macau, which raised $1.87bn through its Hong Kong IPO this month, is trading seven per cent lower than its offering price of HK$10.08.
Sands China, founded by billionaire Sheldon Adelson, could be valued at $10.8bn based on the low-end of its price range. Wynn Macau has a market value of $6.3bn.
Sands was the first US casino operator to enter Macau in 2004 after the government opened the gambling market to outsiders.