Companies

MGM China offering likely in first quarter

By Doug Young and Lee Chyen Yee (China Daily)
Updated: 2010-12-02 10:30

HONGKONG -MGM China, an MGM Resorts International joint venture in Asia's gambling center Macao, aims to launch an initial public offering in Hong Kong in the first quarter of 2011, a top executive said.

The latest comments indicate a slight delay from previous plans to list this year, ideally after the venture clears hurdles for a second casino resort in Macao, the world's largest gambling market.

"Our anticipation is around the first quarter," Pansy Ho, MGM Resorts' Macao partner and daughter of gambling tycoon Stanley Ho, told Reuters on the sidelines of a business event on Wednesday. "We'll continue to supply supporting material."

Ho declined to provide other details on the IPO, such as how much MGM China aimed to raise. "Right now, it's looking good," she said.

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In September, a Goldman Sachs analyst estimated that MGM China's offering in Hong Kong, a hotbed for IPOs this year, could generate proceeds of more than $300 million.

Some of MGM's rivals spun off their Macao assets last year in Hong Kong. Wynn Resorts Ltd listed Wynn Macao Ltd, while Las Vegas Sands Corp floated Sands China Ltd.

Ho also said the Macao government was expected to announce its decision on MGM China's second resort on Macao's Cotai Strip, at the same time as those for projects by rivals SJM Holdings and Wynn Macao projects.

Previously, the market had expected the announcements to come separately.

"We're waiting for the government to tell us," she said.

"We've been told the process will take some time."

Wynn Macao's shares were up 4.7 percent and SJM Holdings was down 4.99 percent on Wednesday, compared with the Hang Seng Index's 1.05 percent gain.

Reuters