MGM China IPO shares being snapped up by investors

May 30, 2011 8:19 PM

The arrangement MGM Resorts International made with Macau partner Pansy Ho was she would offer 20 percent of her shares, actually 760 million shares, in the initial public offering being made on the Hong Kong Stock Exchange.

In addition, Ho would provide MGM with an additional one percent interest in the Asian company, raising MGM’s ownership to 51 percent, and would also invest $330 million in MGM notes.

Response to the IPO has been so strong, however, that it appeared over the weekend Ho might make available another three percent of her holdings to IPO managers and investors.

Thus, if the additional allotment is sold, Ho’s ownership in MGM China Holdings would be reduced to 26 percent and her cash payment would rise to nearly $1.8 billion. With her cash and stock holdings valued at over $5 billion, Ho becomes the richest woman in Macau.

The Hong Kong Stock Exchange expects shares in the new listing to begin trading on Friday, June 3.

Among the commitments made toward acquiring the new MGM China Holdings issue were those from Kirk Kerkorian, largest single stockholder in the parent MGM Resorts International; John Paulson, the hedge fund operator who correctly called the collapse of the sub-prime mortgage market in 2007, and Hong Kong property magnates Poon Jing and Walter Kwok Ping Sheung.