Macau Legend Cuts Hong Kong IPO Share Size by Half
Macau Legend Development Ltd (1680)., the casino firm backed by former Macau lawmaker David Chow, may raise as much as HK$2.8 billion ($361 million) in its initial public offering after cutting the shares sold by more than half.
The company is offering 934.8 million shares, lower than the 2.05 billion it had earlier planned to sell, according to a statement to the Hong Kong Stock Exchange today. The price range is unchanged at HK$2.30 to HK$2.98 a share.
Macau Legend, which operates casino venues under SJM Holdings Ltd. (880), is cutting the size of its IPO after Asian markets have dropped amid concerns that a cash crunch in China could slow economic growth there. Hong Kong’s benchmark Hang Seng index has lost about 11 percent so far in June.
Key assets of the company include the Landmark Macau hotel, the Pharaoh’s Palace casino and the Macau Fisherman’s Wharf complex. Macau Legend doesn’t have a casino license of its own. Trading is expected to start July 5 in Hong Kong.
SJM is one of just six operators in Macau that have government permission to run their own casinos. It operates some casinos in partnership with companies that don’t have their own licenses.
Mainland Chinese tourists have helped turn Macau into the world’s largest gambling hub, with $38 billion in casino revenue last year, more than six times the Las Vegas Strip. Chow served as a legislator in Macau from 2005 to 2009.
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