Jan. 17 (Bloomberg) -- Macau Legend Development Ltd., the casino firm that cut its initial public offering size in June, said it intends to raise about HK$1.35 billion ($174 million) selling new shares, less than previously planned.
The company will sell as many as 188 million shares at HK$7.25 each, a discount of 7.8 percent to yesterday’s official closing price of HK$7.86, according to a Hong Kong stock exchange filing yesterday.
Macau Legend is raising about 58 percent of the $300 million that Co-Chairman Carl Tong said in September the company planned to generate to revamp its Fisherman’s Wharf casino complex in Macau, the world’s largest gambling hub.
Macau Legend, which operates casinos under the license of billionaire Stanley Ho’s SJM Holdings Ltd., raised HK$2.19 billion in its initial public offering. It had initially intended to raise HK$4.4 billion and use most of the funds for the redevelopment of the Fisherman’s Wharf complex.
The company, which is owned and run by Chairman and Chief Executive Officer David Chow, a former Macau lawmaker, doesn’t have a casino license of its own. Its key assets include the Landmark Macau hotel, the Pharaoh’s Palace casino and the Fisherman’s Wharf complex.
Fisherman’s Wharf will focus more on mass-market gamblers instead of high-stakes bettors, Tong said in September. The company will have a total of 500 gaming tables at Fisherman’s Wharf by 2016 after its revamp.
In the placement, referred to as a top-up sale, Chow’s All Landmark Properties Ltd. is selling existing stock at HK$7.25 a share and will subscribe for an equal number of new shares at the same price. Macau Legend said it will use the proceeds for the redevelopment and for working capital.
Citic Securities Co. unit CLSA Ltd. and Credit Suisse Group AG are placing agents for the share sale, Macau Legend said.
Macau casino revenue growth accelerated last year. Gaming revenue from the six operators of China’s only legal casinos rose 19 percent to 360.7 billion patacas ($45.2 billion), Macau’s Gaming Inspection and Coordination Bureau said this month. That compares with the average estimate of 18 percent growth from five analysts compiled by Bloomberg News.
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