Sands to build Macau resort despite IPO price

Las Vegas Sands will restart a stalled resort in Macau even though its US 2.5 billion dollars initial public offering raised less than expected, a source familiar with the deal told AFP yesterday.
The sale had been expected to raise as much as US 3.4 billion dollars, 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 10.38 Hong Kong dollars (1.35 dollars US), said the source who did not want to be identified.
“The sale was at the lower end of the range,” he told AFP. “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 dollar bank loan would be used to pay construction costs, company executives said last week.
About 11,000 construction jobs were lost when the project halted last November.
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 capitalise on a rebound in sentiment towards Macau’s gaming sector.