A Macau casino resort in China formed by MGM Resorts International (NYSE:MGM) and Pansy Ho plans to make $1.5 billion in an initial public offering on the Honk Kong Stock Exchange.
MGM China Holdings plans to sell 760 million shares between 12.36 Hong Kong dollars, or $1.59 a share, and HK$15.34, or $1.97 a share, to raise at most HK$11.67 billion.
Upon close of the deal, MGM China will become the owner of MGM Grand Paradise, a Macau company that owns the MGM Macau resort and casinos and the related gaming sub-concession. The company said timing of terms has not been determined.
MGM Macau is one of 34 casinos on the Macau Peninsula, which is the only region in the country where gambling is legal. The area has become one of the top gambling markets in the world.
The five-star MGM Macau is an integrated casino and luxury hotel resort with 1,006 slot machines, 427 gaming tables and multiple VIP and private gaming areas. The hotel has a 35-story tower with 587 deluxe rooms, including 99 luxury sweets and 20 private luxury villas, and is connected to a complex of luxury retailers.
MGM Resorts reached a deal last with partner Pansy Ho, who is the daughter of Chinese gambling tycoon Stanley Ho, that will give MGM 51% ownership and management control of the Chinese company once it goes public. Pansy Ho will hold a 29% stake and other shareholders will get a 20% stake.