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Best of Howard Stutz

Gaming Guru

Howard Stutz
 

MGM Resorts moves towards Hong Kong IPO

27 September 2010

LAS VEGAS, Nevada -- MGM Resorts International took its first steps toward an initial public offering on the Hong Kong Stock Exchange by filing a proposed listing application this morning.

In a filing with the U.S. Securities and Exchange Commission, MGM Resorts said that MGM China Holdings Ltd., a Cayman Islands company formed by MGM Resorts and Hong Kong businesswoman Pansy Ho, the company's joint venture partner in the MGM Grand Macau.

The company said that if the proposed listing occurs, MGM China Holdings would control MGM Grand Macau.

"There have not been any decisions made regarding the timing or terms of any such listing or whether MGM China Holdings Limited will ultimately proceed with such a transaction or whether the proposed transaction will ultimately be approved by the Hong Kong Exchange," the company said in its SEC filing.

MGM Resorts has been contemplating an IPO on the Hong Kong exchange. Two other Las Vegas casino operators, Las Vegas Sands Corp. and Wynn Resorts, listed shares on the Hong Kong Stock Exchange last year to raise funds for development purposes in Macau.

"We view an IPO of MGM Macau as an important liquidity event for MGM and, while not unexpected, we think today's filing is a positive step forward for MGM's shares," Goldman Sachs gaming analyst Steve Kent told investors. "We estimate that an offering could generate proceeds in excess of $300 million."
MGM Resorts moves towards Hong Kong IPO is republished from Online.CasinoCity.com.