Vegas Sands will restart a stalled resort in Macau even though its US$2.5 billion initial public offering (IPO) raised less than expected, a source familiar with the deal said yesterday.
Online PR News – 24-November-2009 – – Vegas Sands will restart a stalled resort in Macau even though its US$2.5 billion initial public offering (IPO) raised less than expected, a source familiar with the deal said yesterday.
The sale had been expected to raise as much as US$3.4 billion, with some proceeds earmarked to restart construction on the resort after the global economic crisis dented Macau’s gaming sector last year. The shares will begin trading in Hong Kong next Monday at a price of HK$10.38 (US$1.35), said the source, who did not want to be identified. “The sale was at the lower end of the range,” he said. “But it won’t affect construction or paying down debt — they will still go ahead with that.” Some of the IPO proceeds and a US$1.75 billion bank loan would be used to pay construction costs, company executives said last week. About 11,000 construction jobs were lost when the project halted last November, dealing a blow to the former Portuguese colony. Macau, which was handed back to China in 1999, is the only place in China where casino gambling is allowed. It has now overtaken Las Vegas in terms of gaming revenue after opening the gaming sector to foreign competition in 2002. Las Vegas Sands operates the Venetian, Sands and Four Seasons casino hotels in Macau. The company announced its listing plan after rival Wynn Macau launched an IPO in Hong Kong on Oct. 9, as overseas casino operators seek to capitalize on a rebound in sentiment towards Macau’s gaming sector.