Macau hotel and casino owner Studio City International Holdings Limited saw much investor interest in its stock’s first day trading at the New York Stock Exchange.
Setting a $12.50 initial public offering (IPO) price for each of its American depositary shares (ADSs), each of which correspond to four of its Class A ordinary shares, the Studio City stock, with ticker ‘MSC,’ soon saw upward movement, going as high as $18.49 a share, before closing at $15.50, a 24% increase. Trading volume was about 1.6 million shares.
According to a filing at the Hong Kong stock exchange by parent company Melco International Development Limited, a total number of 28.75 million ADSs was issued, making for $359.4 million raised from the IPO. With the offering, Melco Resorts and Entertainment Limited, through wholly-owned subsidiary MCE Cotai Investments Limited, now has a 57.3% stake in Studio City, still remaining a majority shareholder.
According to Melco International, MCE Cotai had agreed to purchase 15,330,000 ADSs, while affiliates of New Cotai, which had held the remaining Studio City shares, were to purchase 10,220,000 ADSs, which combined represent approximately 88.9% of the total shares offered.
Melco International has planned to distribute 1.5% of the IPO’s proceeds to its shareholders, with the option to acquire Studio City ADSs for those eligible, although such a proposal has not been finalized.
For 2017, Studio City reported an after-tax net loss of $76.4 million, still smaller than its $242.8-million loss the year before.
In related news, Melco International’s subsidiary Melco Resorts and Entertainment (Philippines) announced that the beginning of the tender offer for its shares was to be delayed once more after having been reset to October 22. The tender offer is required prior to Melco Philippines’ intended delisting from the Philippine Stock Exchange (PSE). A tender offer price of about $0.13 has been planned.
Under PSE rules, MCO (Philippines) Investments Limited, which currently holds 73% of Melco Philippines shares, must raise its stake to 95% to be allowed to be delisted, which is supposed to “better support and facilitate [Melco Philippines’] future business plans,” according to Melco International.