REUTERS
MGM Macau, the Macau joint venture of MGM Resorts International, is seeking approval for its proposed US$800 million initial public offering in Hong Kong at the end of this month, sources said.
However, analysts cautioned the continuing family feud involving co-owner Pansy Ho Chiu-king, a daughter of gaming tycoon Stanley Ho Hung-sun, might cause hiccups for the listing, because of a highly public spat with her father over a controversial share transfer worth billions of dollars.
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The Macau venture, owned by MGM Mirage and Pansy Ho, was originally due in the second half of last year.
Sources estimated it would raise about US$500 million, but analysts said the larger figure was still within range because of stellar gaming growth in the city.
“The Macau gaming market has shown pretty good growth in the last year and for sure that would be one of the reasons why MGM could raise more during their IPO,” said Victor Yip at UOB Kay Hian.
MGM Macau’s listing will make it the last of Macau’s six gambling licensees to go public.
Analysts said the casino operator had successfully boosted market share in the past two quarters, strengthening its ability to raise more capital.
“I am still worried whether the dispute will affect the listing because let’s say anybody really puts the case into court, it may affect Pansy’s credibility so that may cause some near-term concerns for MGM’s valuation as well,” Yip said.
Stanley Ho’s SJM Holdings has borne the brunt of market worries about the 89-year-old’s succession plans, losing about 9 per cent since the saga unfolded.
But additional scrutiny has been focused on Pansy Ho and her agreement with MGM Mirage after an official report released by New Jersey gaming regulators in the United States in March last year cited the junket influence within her father’s VIP rooms as a prime concern.
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