The story appears on

Page A15

November 30, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Consumer

No winner dice for debut of Sands IPO

THE initial public offering for Las Vegas Sands' Macau assets, set to be the world's seventh-largest this year, is likely to struggle in its market debut today on high valuations and waning appetite for casino stocks.

The highly anticipated listing of Sands China, nearly two months after rival Wynn Macau's IPO, will test investors' appetite for casino shares by offering a debt-laden firm that promises a strong growth outlook in Macau, the world's biggest and fastest-growing gambling market.

The IPO, which raised US$2.5 billion, is the latest in a string of share sales across Asia as companies look to take advantage of a broad stock market rally that is now showing signs of fatigue.

Sands China shares are expected to trade lower on their debut day, according to an average forecast in a Reuters survey of seven brokers. Two said it could fall 10 percent from its HK$10.38 (US$1.34) issue price, which was already at the bottom of the range that Sands was seeking.

"It is a risky bet on increasing competition and the firm itself is high in gearing," said Alex Wong, a director from Ample Finance Group.

"It won't be able to repeat the performance of Wynn. The glorious moment for casino stocks has passed."

Retail investors, who make up a tenth of the subscriber base, would steer clear of Sands China after lackluster performance for Wynn Macau's stock, which has fallen 7.6 percent below its IPO price of HK$10.08, brokers and analysts said.

Wynn Macau shares jumped 6 percent to end at HK$10.70 on October 9 in their trading debut but they have dropped since then.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend