Melco Seeks to Raise $1.2 Billion

MACAU, China – As reported by the China Standard: "Melco International Development, controlled by the family of casino tycoon Stanley Ho, is seeking to raise up to HK$1.2 billion through a share placement to fund a land acquisition for a casino in Macau, people familiar with the situation said.

"The offering by Melco, whose share price has more than doubled this year, "closed an hour after the opening, fueled up by most larger-scale hedge funds," a fund manager said. It was the largest placement since a stock market correction this month, which has seen the benchmark Hang Seng Index decline about 1,000 points since April. Credit Suisse is the sole bookrunner.

"Melco is considered by investors as a preferred exposure to Macau gaming, said a Hong Kong-based hedge fund manager at a US asset management company. At the same time, "hedge funds are still interested in the local bourse due to high trading volume."

"…Melco, which has plans for three casinos in Macau, is selling 63.6 million new shares with an indicative price range of HK$19 to HK$19.30 each, translating up to a 6.5 percent discount to Monday's closing price of HK$20.30, according to the sale document obtained by fund managers…"

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