Sands IPO may net $500 million

By Liz Benston

Monday, Nov. 22, 2004 | 10:50 a.m.

The owner of the Venetian resort in Las Vegas has boosted its estimated proceeds from an upcoming initial public offering of stock to about $500 million from about $350 million.

Las Vegas Sands Corp. also said its forthcoming $1.6 billion Palazzo resort under construction next to the Venetian is expected to open in the second quarter of 2007, one quarter later than the company had stated several months earlier.

In a filing with the Securities and Exchange Commission today, the company said it expected to ask about $21 per share for its offering of 23,809,524 shares. The price represents the midpoint of an expected range in offering prices, the filing said.

The company said it expects to use the proceeds for "general corporate purposes" as well as to fund development projects in the United Kingdom, Macau and other areas.

Las Vegas Sands will trade on the New York Stock Exchange under the ticker symbol "LVS" and does not expect to pay cash dividends to shareholders, the filing said.

Chairman and Chief Executive Officer Sheldon Adelson, who owns a majority of the private company, is expected to own about 88 percent of the public entity, it said.

Las Vegas Sands said it will be known as a "controlled company" in that Adelson will have control over members appointed to the company's board. NYSE listing requirements that companies have a majority of independent directors on their board won't apply.

The company is expected to have a market capitalization of about $6.8 billion based on an estimated 326,190,476 shares outstanding.