HONG KONG The Macau joint venture of MGM Resorts International is now seeking to raise US$1.5 billion in its upcoming initial public offering—about three times what analysts were expecting as recently as two weeks ago.
The planned IPO on the Hong Kong Stock Exchange for MGM China Holdings Ltd., which has yet to be approved by market officials, had been informally valued at about US$500 million. Sources now tell Dow Jones Newswires that MGM aims to raise US$1.5 billion, partly the result of March gaming results in Macau that are up 45% year over year. Macau, which surpassed Las Vegas as the world’s top gaming market a couple years ago, is now on pace to generate five times more gaming income than the Las Vegas Strip by the end of this year.
MGM China has begun premarketing for the IPO and is hoping to launch the IPO on June 3, Dow Jones reports.
Las Vegas-based MGM Resorts is seeking to list its Macau joint venture with local partner Pansy Ho on the Hong Kong market, structured so that MGM Resorts will obtain 51% ownership—and management control—of MGM China upon consummation of the IPO. Ho would retain a 29% interest.