• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Potential IPO for Studio City still on table: firm

Aug 21, 2018 Newsdesk Latest News, Macau, Top of the deck  


Potential IPO for Studio City still on table: firm

Studio City International Holdings Ltd – the entity that controls the Studio City casino resort in Macau’s Cotai district – says its proposal for an initial public offering (IPO) in the United States is still actively being pursued.

Studio City International Holdings “has been continuing its preparations for the proposed IPO, which is expected to commence as market conditions permit and remains subject to the U.S. Securities and Exchange Commission declaring the registration statement effective,” the firm said in a press release issued on Monday.

The company had first confirmed plans for a potential IPO in August 2017.

The latest release did not made any reference to the dollar amount proposed to be raised through the operation.

Macau-based casino operator Melco Resorts and Entertainment Ltd has a stake of 60 percent in Studio City International Holdings, and it operates the Studio City property. The remaining 40 percent in Studio City International Holdings are held by New Cotai Holdings LLC, an entity controlled by United States-based investment firms Silver Point Capital LP and Oaktree Capital Management LP.

Melco Resorts is already listed in the U.S., namely on Nasdaq, in New York.

In a filing to the Hong Kong Stock Exchange also on Monday, Melco International Development Ltd – the controlling shareholder of Melco Resorts – highlighted that Studio City International Holdings’ proposed IPO was “subject to, among other things, the registration statement being declared effective by the U.S. Securities and Exchange Commission, approval of the relevant stock exchange in the United States, the final decisions of the board [of Melco International] and the board of directors of Studio City [International Holdings] and market conditions.”

Melco International added: “Accordingly, there is no assurance that the proposed spin-off will take place or as to when they may take place.”

Studio City – a US$3.2-billion, 2015 addition to Macau’s roster of mega resorts – includes a collaboration between Hollywood studio Warner Bros and American comic book publisher DC Comics regarding a virtual reality ride called ‘Batman Dark Flight’. The property also has a distinctive figure of eight Ferris wheel.

On a conference call with investment analysts last month, Melco Resorts management said it was currently in the process of developing the detailed design for Phase 2 expansion of Studio City, targeting to begin work in the second half this year.

The Macau government granted earlier this year a three-year extension on the development deadline for the public land concession where Studio City sits. The new deadline is July 24, 2021.

Management stated it was confident that Studio City had ample cash on hand, cash flow and debt capacity available to fund most of the anticipated capital expenditure for Phase 2, but it did not disclose a budget for such expansion.

The company also plans to launch new entertainment offerings at phase 1 of Studio City, including a new show in December, produced in collaboration with London-based entertainment architects Stufish, a company specialising in stadium concert stage designs and which created the concepts for the opening and closing ceremonies of the 2008 Beijing Olympics.

Last month, Melco Resorts opened an e-Sports venue branded “Macau EStadium” at Studio City. The new e-Sports facility is said to aim at promoting e-Sports events in Macau, including multi-player tournaments and live-streaming of e-Sports events taking place elsewhere.

Studio City generated adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$73.2 million for the three months to June 30, versus US$80.7 million a year earlier.

Rolling chip volume at Studio City totalled US$6.1 billion for the second quarter of 2018, compared to US$4.7 billion in the prior-year period. Mass-market table games drop increased to US$814.3 million, compared with US$661.4 million in the second quarter of 2017.

The Studio City scheme has had a chequered history, with the project being mothballed for several years after an original set of investors failed to agree on funding in the aftermath of the global financial crisis that began in 2007.

In 2011, Melco Resorts paid US$360 million to take a 60-percent interest in the project, joining forces with a bloc of existing Studio City investors in the form of New Cotai.


  • tweet
Related articles
  • Melco’s Lawrence Ho hopeful on Macau recovery in March
    Melco’s Lawrence Ho hopeful on Macau...

    Feb 26, 2021  

  • Gaming recovery helps Melco Resorts EBITDA break even 4Q
    Gaming recovery helps Melco Resorts...

    Feb 26, 2021  

More news
  • Aristocrat to launch EGM-based responsible gaming features
    Aristocrat to launch EGM-based...

    Feb 26, 2021  

  • Suncity to open clubs at Londoner Macao, Lisboa Palace
    Suncity to open clubs at Londoner...

    Feb 26, 2021  


Latest News

Aristocrat to launch EGM-based responsible gaming features

Aristocrat to launch EGM-based responsible gaming features

Feb 26, 2021  

Casino slot machine maker and digital games provider Aristocrat Leisure Ltd says it plans to launch in the first quarter this year a new product with responsible gaming features, which has already...
Read More
Suncity to open clubs at Londoner Macao, Lisboa Palace

Suncity to open clubs at Londoner Macao, Lisboa Palace

Feb 26, 2021  

Tech supplier Crane ups forecast for 2021 core sales

Tech supplier Crane ups forecast for 2021 core sales

Feb 26, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day


US$53.4 million

Adjusted EBITDA reported by Asian casino operator Melco Resorts and Entertainment for the fourth quarter of 2020



Most Popular

  • Macau casino GGR soared in final days of CNY: brokeragesMacau casino GGR soared in final days of CNY: brokerages February 23, 2021
  • Pansy Ho sells off more stock in MGM Resorts for US$36mlnPansy Ho sells off more stock in MGM Resorts for US$36mln February 23, 2021
  • Macau removes last mainland cities from its quarantine listMacau removes last mainland cities from its quarantine list February 23, 2021
  • Macau VIP challenged by changes in China: Galaxy Ent bossMacau VIP challenged by changes in China: Galaxy Ent boss February 25, 2021
  • Galaxy Macau Phase 3 MICE to launch in stages says execGalaxy Macau Phase 3 MICE to launch in stages says exec February 24, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us