Macau’s most glamorous lawmaker wants hundreds of millions from IPO to build hotels
Spending two thirds of the money raised on just two hotels seems rather short sited, but if there’s one thing a politician in a gaming city knows it’s that appearances can be deceiving.
Macau Legend Development Ltd., the casino operator backed by former Macau lawmaker David Chow, is seeking as much as $788 million in an initial public offering to finance new hotels in the world’s biggest gaming hub.
The company is offering 2.05 billion shares in Hong Kong at HK$2.30 (30 cents) to HK$2.98 apiece, according to a term sheet obtained by Bloomberg News. New stock accounts for about 86 percent of the sale, the terms show.
Macau Legend, which operates casino venues under SJM Holdings Ltd., is starting the biggest gaming IPO in Hong Kong since MGM China Holdings Ltd.’s $1.6 billion offering in May 2011. The company doesn’t have a casino license of its own, according to a filing to the Hong Kong stock exchange today.
Dynam Hong Kong Co. is investing $35 million in the IPO as a cornerstone investor, the terms show. CLSA Ltd., Citic Securities Co. and Credit Suisse Group AG are among banks managing the sale, according to the terms.
Macau Legend plans to use about 37 percent of the IPO proceeds to finance construction of the Prague Harbor View Hotel. Another 30 percent will be used for the Palace Hotel, the terms show. Macau Legend shares will start trading on Jun 27, according to the terms.
Key assets of the company include the Landmark Macau hotel, the Pharaoh’s Palace casino and the Macau Fisherman’s Wharf complex, today’s exchange filing shows.
SJM is one of just six operators in Macau that have government permission to run their own casinos. It operates some casinos in partnership with companies that don’t have their own licenses.
Chow served as a legislator in Macau from 2005 to 2009.
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