Las Vegas Sands Considering Macau IPO to Raise Funds

Las Vegas Sands Corp. (LVS) is looking to raise as much as $4 billion, according to news reports, in an effort to resume development of a resort in Macau. The giant casino operator is considering an initial public offer in Hong Kong as one of the options to garner the funds.

The stock offer will be for the company’s existing assets in Macau, where it already owns the Sands, the Venetian and the Four Seasons properties. The company is planning to restart construction in the $12 billion Cotai strip in Macau, which was suspended in November last year as global credit markets dried up. The company also downsized 11,000 workers engaged in the strip at that time.

Las Vegas Sands, which requires about $2 billion to revive the Cotai project, is also exploring the possibility of selling certain properties including retail stores in the Venetian resort and the Four Seasons hotel. The Macau properties contributed about 70% of the company’s net revenue during the first quarter of this year. Las Vegas Sands has the second-largest market share in Macau’s casino revenue according to Portuguese news agency Lusa.

The company is also in talks with bankers to raise project finance and is also asking construction companies to pitch in with equity and financing. The company expects to finalize plans on raising the funds by the end of this month with the financing in place by September.

Meanwhile, Las Vegas Sands has delayed the launch of its $5.5 billion Marina Bay Sands resort in Singapore. The company now expects to open the resort in January or February next year on account of disruptions in availability of raw materials.

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