DOW JONES NEWSWIRES
By Prudence Ho and Kate O’Keeffe
HONG KONG (Dow Jones)–Nasdaq-listed Melco Crown Entertainment Ltd. (MPEL) is considering a plan to list by introduction in Hong Kong, rather than its original plan to raise between US$400 million and US$600 million from an initial public offering, a person familiar with the situation said Monday.
The person said the decision by the Macau casino operator would depend on market conditions in coming months. Companies that list by introduction don’t raise any new capital or issue new shares.
Melco Crown–backed by Lawrence Ho, son of Macau gambling tycoon Stanley Ho, and Australian billionaire James Packer–had been planning an IPO for the fourth quarter, another person familiar with the situation said earlier. The company said in August it had applied to the Hong Kong Stock Exchange to launch a dual listing in the Chinese territory in conjunction with a potential global share offering.
Lawrence Ho has said a listing would put Melco Crown on par with its competitors, all of whom have Hong Kong listings. It would also improve liquidity for shareholders, give the company access to an additional source of capital and allow local investors to directly invest in Melco Crown. At the moment, Hong Kong investors can buy shares of Hong Kong-listed Melco International Development Ltd. (0200.HK), which owns approximately one-third of the Nasdaq-listed entity.
Ho didn’t provide a timeline for the listing, which would require regulatory and shareholder approval.
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