Macau Legend Plans to Raise $300 Million Through Share Sale

Macau Legend Development Ltd., the casino firm that halved its initial public offering size in June, plans to raise about $300 million by selling new shares next year to fund a redevelopment.

The casino operator expects to spend about $1 billion to revamp its Fisherman’s Wharf gaming complex in the world’s biggest gambling hub. It plans to fund that through the share sale and by raising debt, co-chairman Carl Tong said in an interview in Tokyo.

Macau Legend, which operates casino venues under the license of SJM Holdings Ltd., raised HK$2.19 billion ($282 million) 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.

Shares of Macau Legend fell 5.1 percent to HK$2.96 at the close in Hong Kong trading yesterday. The stock is still 26 percent above its IPO price.

The proposed share sale may take place as soon as early next year and will raise Macau Legend’s public float to about 25 percent to 26 percent from the current 15 percent to 16 percent, Tong said. The company is also looking to refinance existing syndicated loans through debt issuance, he said.

It plans to work with CLSA Ltd., Citic Securities Co. and Credit Suisse Group AG on the share sale, Tong said.

The company, which is backed by former Macau lawmaker David Chow, 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. The company will have a total of 500 gaming tables at Fisherman’s Wharf by 2016 after its revamp.

Macau is the world’s largest gambling hub, with $38 billion in casino revenue last year, six times that of the Las Vegas Strip. Chow served as a legislator in Macau from 2005 to 2009. The company expects “double digit” revenue growth in the fourth quarter, Tong said.

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