Wynn Resorts To HK IPO 20 pts Off Wynncore Macau
Numerous news outlets are reporting that Wynn Resorts will be offering 20% of its Macau operations on the Hong Kong Stock Exchange with an investor roadshow leading to a Wynn Macau IPO on October 9th.
The WSJ/Dow Jones - who claim to have seen a term sheet - say that Wynn Resorts will be offering 3.75 BILLION (yes, with a B) shares, with the option to add another 500+ million should there be great demand. Pricing of "Wynn HK" is currently unknown.
Looking at fellow Macau concession holders who are listed on the HKG - Galaxy Entertainment (0028), SJM Holdings Limited (0888) and AMAX Holdings (0959) - doesn't really shed much light on what Wynn's IPO will be priced at.
As of this writing, HK$7.75 = US$1. If Wynn offered its 3.75B shares valued at SJM's current prices (HK$4.14) it would net HK$15.5B, thereby giving Wynn Macau (+ Cotai?) a valuation of HK$62B (about US$8 billion dollars).
Seems a little low to me.
The obvious question... what is Wynn Resort's plan to use the cash? A possible phase 2.5 optimization of Wynn Macau, which would tie the entire property together better? Put the pedal to the metal in Cotai? Pay down Macau related debt? Skim some cream off the top?