Nov. 21 (Bloomberg) -- Sands China Ltd. and its parent Las Vegas Sands Corp., the casino company controlled by billionaire Sheldon Adelson, raised HK$19.4 billion ($2.5 billion) in a Hong Kong share sale conducted at the low end of the offered range.

A total of 1.87 billion shares were sold at HK$10.38 each, compared with the HK$10.38 to HK$13.88 range that the company had sought, according to Bloomberg data. The sale values Sands China at HK$83.4 billion ($10.8 billion), based on calculations by Bloomberg using information from the prospectus.

“This IPO demonstrates that Asia has the liquidity available for U.S. firms looking to develop leisure assets,” said independent industry strategist Jonathan Galaviz. “A bet on Macau is a bet on the greater Asian economic story, so if you believe in Asia you’ve got to believe in Macau.”

Sands China’s share of the proceeds, together with $1.75 billion in bank financing, will help it resume construction of the 13.3 million square foot (1.24 million square meter) casino- resort that was halted in November 2008 after credit markets seized up and revenue dwindled.

Completion of the project will help strengthen Adelson’s challenge to 87-year-old magnate Stanley Ho, who controls SJM Holdings Ltd., the biggest casino operator by market share in Macau, the world’s largest gambling hub. Adelson, 76, is betting that more convention space, hotel beds and shopping malls will entice visitors to stay longer.

Low End Closer

The price is “not really surprising,” because the low end of the forecast range is closer to where Wynn Macau Ltd. priced its shares, said Gabriel Chan, a Hong Kong-based analyst at Credit Suisse Group AG. “Why should investors pay more than that, an even higher valuation, in order to try to make money?”

Wynn Macau shares have fallen 13 percent since their debut on Oct. 9. Las Vegas Sands Corp. shares climbed 176 percent this year, after dropping 94 percent in 2008. The stock fell 3.5 percent to close at $16.35 on Nov. 20.

Sands China will open most of its stalled resort in Macau by December 2011, Michael Leven, chief operating officer of the parent, said Nov. 15. The project, located on what is known as sites 5 and 6 opposite its flagship Venetian Macao on the Cotai Strip, would add 6,000 rooms to the 3,554 Sands had in the city as of June 30, according to its prospectus.

“It has yet to be seen whether the company can fully execute its Macau strategy, but this level of capital injection bodes well for the ultimate completion of company’s Cotai Strip master plan,” Galaviz said.

Legal Casinos

Macau, a former Portuguese colony, is the only place in China where casinos are legal. More than half of the city’s visitors come from mainland China, the world’s most-populous country.

Sands China could restart construction as early as January, Steve Jacobs, chief executive of Sands China, said in an earlier briefing. Sands spokesman Ron Reese declined to comment on the IPO pricing today.

The share sale will add to the busiest period for Hong Kong IPOs in almost two years as investors captivated by China, the only economy among the world’s 10 largest that’s projected to grow this year, seek to tap into the biggest overseas market for mainland companies.

Sands China’s sale, the 16th IPO on the city’s exchange since Oct. 1, raises to HK$80.9 billion the tally of funds raised so far this quarter, the most since the final three months of 2007, according to data compiled by Bloomberg. The 33 initial share sales in the first nine months of 2009 raised a combined HK$102.5 billion, the data show.

Casino revenue in Macau may rise to a record this year, Portuguese news agency Lusa reported earlier this month, boosted by unprecedented lending and an economic recovery in China.

Macau’s gambling revenue may grow 10 percent next year, Kenneth Fong, an analyst at Nomura International Hong Kong, said earlier this month.

To contact the reporters on this story: Chia-Peck Wong in Hong Kong at cpwong@bloomberg.netSarah McDonald in Sydney at smcdonald23@bloomberg.net.

Last Updated: November 20, 2009 23:27 EST