Wednesday, September 18, 2019
Martin Hennecke

Melco plans to spin off Studio City
Melco International Development (0200) is seeking to spin off Studio City to raise as much as HK$2.8 billion on an initial public offering of American depositary shares. Studio City, a Macau-based entertainment resort and casino, filed the application to the United States Securities and Exchange Commission yesterday for the global offering, according to Melco. The preliminary offer price range for the ADSs was set between US$10.50 (HK$81.90) and US$12.50 per ADS. Based on such price range, the global offering is expected to generate gross proceeds of between US$301.88 million and US$359.38 million. Studio City Casino has 250 mass-market gaming tables and 45 VIP rolling chip tables, with about 970 gaming machines. The cinematically-themed integrated resort also provides non-gaming equipment, including figure-8 Ferris wheel, a Warner Bros.-themed family entertainment center, a 4-D Batman flight simulator, a nightclub and a 5,000-seat live performance arena, according to the prospectus. Studio City also features about 1,600 luxury hotel rooms, diverse food and beverage establishments and about 35,000 square meters of complementary retail space. MCE Cotai, a wholly owned subsidiary of Melco Resorts and currently the holder of 60 percent of Studio City and certain affiliates of New Cotai, which currently holds the remaining 40 percent of the company, have indicated an interest in purchasing up to an aggregate of 25.55 million ADSs, representing about 88.9 percent of global offering shares. Melco International Development will remain as Melco Resorts' majority shareholder, the company said. Studio City plans to use the net proceeds of this offering and the assured entitlement distribution to acquire newly-issued MSC Cotai shares. Shares in Melco International Development rose by 2.04 percent to HK$15 yesterday, after announcing the spin-off plan.

Previous news : Don't count on GDP answers


Register  Forget Password
Advanced Search
© 2019 The Standard, The Standard Newspapers Publishing Ltd.
Home | Business | Metro | Focus | Opinion | Markets | World | Sports | Entertainment | Monday Money | Property | Macau | Weekend