Las Vegas Sands expects $3.35B from Asian IPO

Monday, Nov. 9, 2009 | 8:11 a.m.

Headlines from the Vegas gaming industry

Sands China Ltd., the Macau gambling district arm of Las Vegas Sands Corp., today said it plans to raise up to $3.35 billion in an initial public stock offering.

Las Vegas Sands and Sands China today said the planned offering on the Hong Kong exchange consists of 1.87 billion shares, priced between HK$10.38 and HK$13.88 each (U.S. $1.34-$1.79).

Bloomberg reported the sale planned for later in the month for a 23.4 percent stake in Sands China values the unit at as much as HK$111 billion, or 16.6 times next year’s estimated earnings before interest, tax, depreciation and amortization.

The Wall Street Journal reported a provision of the deal could boost Sands' take to $3.83 billion.

This would be the Hong Kong exchange's second-largest IPO this year and would be larger than that of the $1.87 billion raised by Wynn Macau Ltd. for its Chinese expansion plans.

Las Vegas Sands Chairman and Chief Executive Sheldon Adelson intends to use funds from the Hong Kong IPO to repay debt and restart stalled construction projects.

Even as Las Vegas Sands grows in China, the company said in a regulatory filing today that work on its high-rise residential condominium tower in Las Vegas, the St. Regis Residences, will remain suspended until the economy turns around. The St. Regis is at the company's Venetian and Palazzo resort complex on the Las Vegas Strip.

The company's operating assets in Macau are the Venetian Macao, the Sands Macao and the Plaza, a resort with a Four Seasons Hotel and the Plaza Casino.

Revenue in 2008 for Las Vegas Sands in Macau was $3.053 billion and adjusted EBITDAR -- a profitability measure -- was $686 million, up 55.3 percent and 33.4 percent, respectively, from 2007.

Sands has projected 2009 adjusted EBITDAR of $803 million from its Macau operations.

In the third quarter, revenue at the Venetian Macao fell 5.5 percent to $493.6 million, but rose 13 percent to $280.8 million at Sands Macao and was up 37.8 percent to $67.1 million at the Four Seasons Macao and Plaza Casino.

Discussion: 3 comments so far…

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By gmag39

Nov. 9, 2009

10:17 a.m.

Suggest removal

Addleson & Wynn... paper tigers. If these twin sons of different mothers had a triplet, it would be Trump.
By BorisR

Nov. 11, 2009

8:36 p.m.

Suggest removal

i just wonder what the shareholder is buying when he accepts the Hong Kong IPO deal. Hard to imagine that you're betting on the Macau business solely as otgherwise there would have to be some sort of a spin-off from the Vegas assets. Instead, LVS is simply generating mroe money through this IPO but it's absolutely not clear what the investor is getting....
Does anybody know?
By BorisR

Nov. 12, 2009

7:02 a.m.

Suggest removal

And Mr Steve Wynn is "generously" declaring a 6 dollar-per-share dividend in the midst of the biggest economical turmoils of the last century. Just as people were to think how greatly the company is run and how much generating it's generating. Far from it, why else would they launch another IPO in Hong Kong in order to raise funds for their Encore completion?
Is this divorce so expensive that he has to make such moves and skim money off the company? Remember, he's holding over 45 million shares, not counting his wife's stocks, and if you multiply this by 6 dollars per share, this results in a mega-bonus-payout to Mr and Mrs Wynn. I wonder what additional steps Mr Adelson is pulling out of his magic hat if he also needs additional funds for his personal use.
From Switzerland