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Wynn Resorts Raising Funds Via Secondary Listing on Hong Kong Exchange

This is just breaking over the wires. Via Reuters.

U.S. casino giant Wynn Resorts Ltd (WYNN.O: Quote, Profile, Research) is considering a Hong Kong share sale to raise as much as $3 billion to help fund the firm's planned mega resort in the former Portuguese enclave of Macau, a newspaper reported on Thursday.

The secondary listing's profits will be used to pay for Wynn Cotai, would that mean that the property would be under a separate corporate entity?

It's a pretty slick move, if it works.

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Comments & Discussion:

I saw this on Reuters - very interesting.

Probably worth discussing on the 'Gang tomorrow.

It would still be the same, single corporate entity. Only, the shares listed in Hong Kong would own the equivelant of Wynn's American shares (in some fractional/multiple form). Hong kong recently opened up their markets for foreign listings. Its pretty much the same thing as ADR in the U.S. --Like how Nokia is a foreign company, but lists their shares in the U.S., as well as abroad.

They are most likely wanting to raise money in HK to increase their brand awareness in Hong Kong, to appeal to a different investor base, and to have better access to the local Hong Kong debt/capital markets in the future. It theoretically is no different from listing addtional shares in the U.S., only a matter of where the investors are located.

It is still the same, single company; only Hong Kong investors will own a larger part of it if Stevo follows through with the listing. I read that the idea has/will be scrapped, at least temporarily until the markets settle down. It isn't exactly the best environment to raise equity capital right now.

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