Sands China 1928

Sands China 1928

Postby winston » Mon Nov 02, 2009 12:02 pm

DJ Sands China To Seek $2.5B In HK IPO, To List Nov 30-Source

HONG KONG (Dow Jones)--Sands China Ltd., the Macau unit of Las Vegas Sands Corp. (LVS), started pre-marketing its US$2.5 billion Hong Kong initial public offering Monday and is slated to list on Nov. 30, a person familiar with the situation said Monday.

The company will start its roadshow on Nov. 9, with pricing expected on Nov. 19, the person said.

Proceeds from the IPO will be used to repay a shareholder loan that it took out recently, repay a credit facility from banks and finance the completion of parcels five and six of its development in Macau's Cotai Strip, he said.

Citigroup Inc. (C) Goldman Sachs Group Inc. (GS) and UBS AG (UBS) have been appointed as global coordinators of the IPO, with Barclays PLC (BCS) as a bookrunner, people familiar with the situation said earlier.

Source: Amy Or, Dow Jones Newswires
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Re: Sands China IPO

Postby winston » Mon Nov 09, 2009 8:47 am

UPDATE 1-Las Vegas Sands seeks up to $3.35 bln in HK IPO By Kennix Chim

HONG KONG, Nov 8 (Reuters) - Gaming company Las Vegas Sands (LVS.N) is set to raise up to HK$25.95 billion ($3.35 billion) through an initial public offering of shares in its Macau business, according to sources with direct knowledge of the IPO.

The company is selling 1.87 billion shares at a price ranging from HK$10.38 to HK$13.88 per share, the sources said.

The range gives an earnings price multiple of 13.5 to 16.5 times the business's 2010 projected earnings, they said.

Citigroup (C.N) and Goldman Sachs (GS.N) are the joint global coordinators for the offer. The banks are also bookrunners for the deal, along with BNP Paribas (BNPP.PA) and Barclays (BARC.L) and UBS.

The Nevada-based group, operator of the Venetian Resort in Las Vegas, is seeking to list its Macau division on the Hong Kong Stock Exchange to boost the value of it's overall business.

The gaming and casino company run by Sheldon Adelson has struggled with a heavy debt load, and is looking to seize on an opportunity to have a publicly traded division in Hong Kong at a time when the IPO window is open.

Fellow Las Vegas gaming company, Wynn Resorts (WYNN.O), listed it's Macau unit earlier this month, raising $1.87 billion.
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Re: Sands China IPO

Postby winston » Tue Nov 10, 2009 7:36 am

Sands China, the Macau unit of billionaire Sheldon Adelson's casino company, is seeking up to HK$26 billion.

The global offering consists of 1.87 billion shares - 10 percent or 187 million shares are for Hong Kong while the overseas tranche consists of 1.68 billion shares, including 1.08 billion new issues.

The indicative price range is between HK$10.38 and HK$13.88 per share.

Goldman Sachs and Citi are the joint global coordinators of the Sands deal. "Its business is diversified " an analyst said. "For an investment portfolio, it is not lopsided, and hence risks are dispersed."

New World Development (0017) chairman Cheng Yu-tung said he will buy a stake. Four other firms are planning to take advantage of the revived confidence in IPOs and launch bids.

Source: The Standard HK
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Re: Sands China IPO

Postby winston » Mon Nov 16, 2009 12:00 pm

From Phillips:-

Valuation

According to the IPO prospectus, forecast adjusted EBITDA for 2009 will not be less than US$ 802.9mn. So for the indicated price range, EV/ EBITDA will be between 13 – 17.1x. Referencing the peer group, average 2009 EV/ EBITDA of 18.42x, our 12-month target price is HK$ 14.86, corresponding to 7.1% upside potential for the high end of the range.


Risk

1) Willingness or ability of customers to travel.

2) Theoretical win rates of casino operations that may be due to fraud or cheating.

3) Credit risk as a result of extending credit to certain premium players and gaming promoters.
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Re: Sands China IPO

Postby winston » Wed Nov 18, 2009 7:11 am

New World Development (0017) chairman Cheng Yu-tung and Chinese Estates (0127) boss Joseph Lau Luen- hung invested a combined HK$2 billion to subscribe to China Sands.

But the casino operator received a lukewarm response from the retail market as the public offering was 36.2 percent covered drawing just HK$940 million in margin financing orders.

Source: The Standard HK
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Re: Sands China IPO

Postby winston » Fri Nov 20, 2009 5:54 pm

Sands China IPO Seeks $3.4 Billion at Highest Price for Casino Share Business
By Michael Tsang

Nov. 20 (Bloomberg) -- Sands China Ltd., the Macau casino unit controlled by billionaire Sheldon Adelson, is set to raise as much as HK$26 billion ($3.4 billion) in Hong Kong’s biggest initial public offering this year at a higher valuation than investors pay for any casino resort in the world.

Sands China plans to sell 1.87 billion shares as early as tomorrow, giving the company a market capitalization of about HK$110 billion based on the high end of its range of HK$10.38 to HK$13.88 each, according to a regulatory filing. The IPO also implies a so-called enterprise value, the sum of its stock and debt minus cash, of 16.6 times next year’s earnings before interest, taxes, depreciation and amortization, according to terms of the sale sent to investors. That’s more expensive than 23 casino-hotel operators tracked by Bloomberg globally and double the average valuation for the industry.

Source: Bloomberg
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Re: Sands China IPO

Postby winston » Sat Nov 21, 2009 10:21 am

Applied.

Sands China shifts $2.8b in Hong Kong IPO - Sydney Morning Herald

Sands China and its parent, the casino company controlled by billionaire Sheldon Adelson, raised $HK19.4 billion ($2.8 billion) in a Hong Kong share sale conducted at the low end of its forecast range.

A total of 1.87 billion shares were sold at $HK10.38 each, compared with the $HK10.38 to $HK13.88 that the company sought, according to Bloomberg data. Sands joins Wynn Macau Ltd. in selling shares in Hong Kong after other casino operators surged this year. Las Vegas Sands Corp.'s shares surged 176 per cent this year, after dropping 94 percent in 2008.

Sands China's share of the proceeds, together with $US1.75 billion in bank financing, will help it resume construction of the 13.3 million square foot (1.24 million square meters) casino-resort that was halted in November 2008 after credit markets seized up and revenue dwindled.

The completion of the project will help strengthen Adelson's challenge to 87-year-old magnate Stanley Ho, who controls SJM Holdings, the biggest casino operator by market share in Macau, the world's largest gambling hub. Adelson, 76, is betting that more convention space, hotel beds and shopping malls will entice visitors to stay longer in the world's biggest gambling hub.

http://www.smh.com.au/business/world-bu ... -irve.html
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Re: Sands China IPO

Postby winston » Mon Nov 23, 2009 7:21 am

Apllied.

Sands set to revive Macau project

Las Vegas Sands will restart a stalled resort in Macau even though its initial public offering in Hong Kong raised only US$2.5 billion (HK$19.5 billion) - less than it had hoped for - a source familiar with the deal said yesterday.

The IPO had been expected to raise as much as US$3.4 billion, with some proceeds earmarked to restart construction on the resort after the global economic crisis dented Macau's gaming sector last year.

The shares will begin trading in Hong Kong on November 30 at a price of HK$10.38.

"The sale was at the lower end of the range," the source said. "But it won't affect construction or paying down debt. They will still go ahead with that."

Some of the IPO proceeds and a US$1.75 billion bank loan will be used to pay construction costs, company executives said last week.

About 11,000 construction jobs were lost when the project halted in November last year.

Macau is the only Chinese city where casino gambling is allowed. It has now overtaken Las Vegas in terms of gaming revenue after opening the gaming sector to foreign competition in 2002. Las Vegas Sands currently operates the Venetian, Sands and Four Seasons casino hotels in Macau.

The company announced its listing plan after rival Wynn Macau launched an IPO in Hong Kong on October 9, as overseas casino operators seek to capitalize on a rebound in sentiment towards Macau's gaming sector.

Source: AGENCE FRANCE-PRESSE

http://www.thestandard.com.hk/news_deta ... 91123&fc=1
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Re: Sands China IPO

Postby winston » Mon Nov 23, 2009 2:29 pm

Wynn Macau, the casino company led by billionaire Stephen Wynn that sold shares in a HK$12.6 billion IPO in Hong Kong in September, is valued at 13.8 times 2010 estimated Ebitda, according to data compiled by Bloomberg.

SJM Holdings Ltd., Macau’s biggest casino operator by market share and controlled by Stanley Ho, trades for 6.6 times next year’s Ebitda, according to data compiled by Bloomberg.

Relative Value

The price range for Sands China’s offering valued the company at 28.1 times to 37.1 times 2010 earnings estimates, sales documents showed. That’s more than the industry median of 16.3 times 2010 earnings, data compiled by Bloomberg show.

The price is “not really surprising,” because the low end of the forecast range is closer to where Wynn Macau priced its shares, said Gabriel Chan, a Hong Kong-based analyst at Credit Suisse Group AG.

“Why should investors pay more than that, an even higher valuation, in order to try to make money?”

Source: Bloomberg
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Re: Sands China IPO

Postby winston » Mon Nov 30, 2009 7:39 am

Fate of casino operator seen written in the sands by Mandy Lo, The Standard HK

China Sands is expected to struggle in its trading debut today after a poor showing in the pre-IPO market on Friday.

Its shares are tipped to shed 10 percent today as brokers are not optimistic about the outlook for the casino market, while Dubai's troubles may also hurt.

According to Phillip Securities, China Sands lost 13.28 percent to close at HK$9 in the gray market at the end of the week.

"The gaming industry is not particularly attractive as the mainland policy on visa restrictions to Macau changes from time to time," said Prudential Brokerage associate director Mark To.

Also, he said, Sands is a foreign player that needs to spend more to compete with local operators - a situation that contributed to the firm putting its Macau project on hold this year.

Also, To said, China Sands' stock would not grow much due to the large fundraising involved and the fact its business is now well understood, removing the speculation factor.
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