he venture between MGM Resorts International and Pansy Ho submitted a proposed listing application with the Hong Kong Stock Exchange yesterday, according to a filing to the U.S. Securities and Exchange Commission. No decision has been made about when to hold the share sale or how much it may raise, according to the statement.
MGM Chief Executive Officer Jim Murren said in August he plans to build “multiple properties” in Macau, where total casino revenue has surged 63 % this year through August. The MGM venture has the smallest market share of the six casino operators in the world’s biggest gambling hub, according to estimates by CLSA analyst Aaron Fischer.
The listing plan is “modestly bullish” for MGM Resorts, David Katz, an analyst at Jefferies & Co. in New York, wrote in a note to investors today. “Management has indicated previously its intention to pursue an IPO of 25 % of its Macau assets, which we expect to generate US$ 300 million for MGM’s 50 % share.”
MGM Resorts rose 5.4 % to close at us$ 11.25 in New York trading yesterday, boosting its gain this year to 23 %. Las Vegas Sands, the world’s biggest casino operator by market value, rose 4.1 % to us$ 35.10 and has more than doubled this year.