CASINO

MGM China IPO expected next month

TAGs: Macau, MGM China

MGM MacauMGM China is expected to have everything in place for an IPO in early June. It was reported early last year that the joint venture between MGM Resorts International and Pansy Ho were to float the company. With their core business in Macau, it seems like Stanley’s Ho daughter and MGM want a bit more of the green stuff.

Sources cited in FinanceAsia report that pre-marketing has begun on the IPO that is expected to raise anything between $1billion and $1.5billion.

MGM Resorts recently implemented a restructuring plan that will see them takeover as the majority shareholder in the joint venture by increasing their stake from 50% to 51%.

Pansy was of course part of the conspiracy to steal Ho’s company from right under his nose. Despite her stake being reduced to 29%, the other 20% being sold through the IPO, Pansy will continue in her current capacity. The company will then continue to benefit from her, “experience in and knowledge of the Macau market, her relationships in the Greater China region and her general business skills, particularly in the areas of strategy, design and marketing.”

It’s reported that interest in the IPO is good and it is likely to receive significant support when bookbuilding begins on May 17. The final price will be stated after the close of US trading on May 26 before its trading debut on June 2 or 3.

Macau is like the Playboy Mansion right now with all those on the outside looking in wanting a piece of the pie. An IPO might not be the best way to exploit the market but in the short, it sounds like MGM might make a fair bit of wonga.

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