Not vested. Dont like their location and dont think they have a USP.
DJ MARKET TALK: Speculative Subscription To MGM China IPO-Celestial
1431 [Dow Jones] Celestial Securities advises speculative subscription to MGM China's (2282.HK) IPO, which kicks off its offering today; it says the company currently owns and operates MGM Macau, a premium integrated casino resort located on the Macau Peninsula.
The house says MGM China's indicative range of HK$12.36-HK$15.34 corresponds to an expected FY11 P/E of 16X-20X, which is at discount to other Macau rivals.
Benefiting from the rapid economic growth of China, the revenue for Macau's gaming industry is expected to rise; and "with the strong financial background, international reputation and expertise of MGM Resorts International, the company is expected to get a slice of the action," Celestial says.
But it adds that investors should be aware that the company's market share is only around 11% and it has only got one operating unit.
Source: Dow Jones Newswire