It’s official: Sands sets Hong Kong IPO sight at $2.5 billion

Nov 2, 2009 8:10 PM
by Ray Poirier |

After weeks of speculation, that had analysts estimating the size of the Las Vegas Sands Corp. (LVS) initial public offering in Hong Kong at between $1.5 billion and $2.5 billion, documents that surfaced Monday indicated the goal will be $2.5 billion.

The size is consistent with the business philosophy of principal stockholder Sheldon Adelson which is: make it bigger, make it better.

Last month, Las Vegas and Macau rival Wynn Resorts Inc. (WYNN) successfully completed a Hong Kong IPO for $1.63 billion.

Of course, considering the size of the Las Vegas Sands debt – estimated at $11.2 billion – Monday’s IPO revelation was no surprise.

Other Articles:
Las Vegas Sands rises on approval of Hong Kong IPO
Las Vegas Sands loses $123 million in 3Q
Singapore tourism counting on Las Vegas Sands
Also Check out our Slots & Casino

The company has indicated that proceeds from the sale will be used to both lower the outstanding debt and provide funds for the continuation of construction on the Cotai Strip in Macau.

The projects include a Shangri-La/Traders Hotel, a Sheraton Hotel and three casinos along two neighboring sites.

Hong Kong LVS shares are expected to begin trading on Nov. 30.

Question? Comment? E-mail me at: Ray Poirier