he company would use the cash to finance its ambitious expansion plans in the nearby gaming haven of Macau, the South China Morning Post said, citing unnamed sources. Funds from a Hong Kong listing could help finance the group’s expansion in Macau, where it currently operates a 600-room hotel-and-casino complex.
However, the current poor market conditions in Hong Kong - the benchmark index has tumbled more than 20 percent since the start of the year - could delay any move, the report said, and added Wynn’s current plans to open a 400-room hotel tower called Encore next to its existing property did not need new financing.
Instead, it could use any cash raised from a share sale to build a resort on the Cotai Strip, a huge piece of reclaimed land close to Las Vegas Sands’ huge Venetian Casino, which opened last August. Several projects are currently being built there in an effort to recreate the Las Vegas Strip, which Macau last year overtook in terms of gaming revenue.
The potential listing comes as Wynn’s Macau rival, Stanley Ho, is expected to take his company public in Hong Kong next week in a move which has reportedly raised around us$ 500 million.
A mixture of poor market conditions and legal action by his estranged sister, Winnie Ho, has delayed the listing since it was first mentioned in January, when the IPO was aiming to raise us$ 2 billion.
Wynn Resorts has secured a 21-hectare site on the Cotai strip, a landfill that separates two outlying islands in the former Portuguese enclave. Ground-breaking on a luxury resort project, which will feature 1,500 to 1,800 rooms, is expected to begin by the end of 2009, the report said.
Wynn Resorts is also planning to build a 400-room hotel-casino tower on a site adjacent to its existing Macau casino. Wynn reportedly has secured lines of credit to fund the tower project, known as Encore, which is expected to be completed by 2010.