Shifting sands
Shifting sands
Las Vegas Sands goes public
Las Vegas Sands Inc., which could become the third-largest U.S. gaming company should mergers between MGM Mirage and Mandalay Resort Group and Harrah's Entertainment and Caesars Entertainment gain approval, filed for a $350 million initial public offering in September.
According to the Gaming Wire in Las Vegas, the IPO could be used to underwrite the company's new Palazzo resort-casino project being built adjacent to its flagship property, The Venetian.
Though no opening price or number of shares for the IPO have been revealed, the company would trade on the New York Stock Exchange. Goldman Sachs Group is managing the offering.
Gaming analysts said the IPO has been much anticipated from Las Vegas Sands and that the company should be received well on Wall Street given the track record of developer and controlling shareholder Sheldon Adelson.
"In business, you keep score by your financial performance and a lot of investors are not that aware of his performance because his public financing has all been in bonds," said Deutsche Bank analyst Andrew Zarnett. "This [IPO] will give [Adelson] a larger platform to show off his firm and its success, and should put him in a good position to buy other assets if he so chooses."
The company also announced last month that it was opening a $1 billion credit line for its Venetian Casino subsidiary.
Once completed, the combined Venetian and Palazzo complex would be the largest resort in the world, with over 7,000 rooms and suites. Money from the IPO could also be used to finance Adelson's Macao casino, as well as to build other projects in Asia and the United Kingdom.
