International edition
June 23, 2021

It could be the fourth largest global IPO this year

Wynn Macao sees strong demand amid shaky Hong Kong IPO market

(Hong Kong).- Days before the highly anticipated pricing for Wynn Macau's us$ 1.6 billion public offering, the public listing looks to have solid demand before its scheduled pricing on Thursday, though sources also cautioned that the books just closed and pricing is still a day or two away.

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ources said the Wynn Macau deal is several times covered, with one source saying the institutional portion was more than 10 times over-subscribed.

If priced at the top of the price range of HK$8.52 (us$ 1.09) to HK$10.08 (us$ 1.3) per share, Wynn Macau will raise HK$12.6 billion (us$ 1.63 billion) in the fourth largest global IPO this year.

Interest in Wynn Macau offer is especially high given the deal's potential impact on the company's flagship Las Vegas operations. Wynn is hoping that a high valuation through the Macau listing here will boost valuations at its other divisions.

But the red hot Hong Kong IPO market, which ripped out several billion-dollar offerings that met with heavy demand and strong debuts, is showing signs of cooling.

Investors, which are seeing roughly us$ 15 billion worth of IPOs hit the Hong Kong market over a three-month span, appear to be getting more selective.

"There are too many deals coming out at the same time," said Andrew Mantel, managing director of Pacific Sun Investment Management. "There's only so much to go around."

Mantel, who went to the Wynn Macau investor luncheon but would not say whether the fund has committed money to the deal, said first mover advantage was important for Wynn. "Companies are scrambling to raise money," he said. "For Wynn, it's important to tap the market before other casino operators."

Rival Las Vegas Sands is aiming to raise us$ 1 billion to us$ 2 billion through the sale of a minority stake in its Macau operations at the end of November or early December.

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