Studio City International Holdings Ltd, the controlling entity of the Studio City casino resort (pictured) in Cotai, Macau, officially registered on Friday its proposal for an initial public offering (IPO) of American depositary shares – representing Class A ordinary shares of Studio City – with the United States Securities and Exchange Commission.
The news was given by Studio City’s 60-percent owner, Nasdaq-listed Melco Resorts and Entertainment Ltd. The filing added the registration statement for the IPO had “not yet become effective”.
The Studio City controlling entity had first confirmed plans for a potential IPO in August 2017.
The latest filing by Melco Resorts did not made any reference to the U.S. dollar amount proposed to be raised through the operation.
Deutsche Bank Securities Inc, Credit Suisse Securities (USA) LLC, and Morgan Stanley and Co LLC are to be involved in the IPO, according to the filing.
On a conference call with investment analysts in July, 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.
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 remaining 40 percent stake in Studio City International Holdings is held by New Cotai Holdings LLC, an entity controlled by U.S.-based investment firms Silver Point Capital LP and Oaktree Capital Management LP.
Studio City had a capital cost of US$3.2 billion and opened in 2015.
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.
Sep 19, 2018Nowadays, millennials, people who were born in the 1980s or...
Aug 16, 2018Food and drink have been heavily marketed as part of Macau...
Jun 27, 2018Macau’s gaming law needs to be amended in order to...
Nov 16, 2018Bringing e-Sports or virtual reality (VR) games into casinos is a “meaningful” experiment in diversification for casino operators, even in the Macau context, where the city’s casinos are...
Nov 16, 2018
"I am not going to speculate on what the [casino licence refreshment] tender requirements would be. I have full confidence and faith in the Macau government to treat everyone fairly"
Wilfred Wong Ying Wai
President and chief operating officer of Macau-based casino operator Sands China