Shares in MGM China Holdings Ltd., the casino venture between MGM Resorts International and Pansy Ho, will be priced at HK$15.34 each, the top end of a range of 760 million share initial public offering originally valued from HK$12.36-HK$15.34. The offering is expected to close on or about June 3.
Proceeds will be about HK$11.1 billion ($1.4 billion), all of which will go to Ho, who is selling down her interest in the 50-50 joint venture. Upon consummation of the IPO, MGM China will be owned (through intermediary companies) 51 percent by MGM Resorts, 29 percent by Ho, and 20 percent by public shareholders, according to an April 13 release by MGM Resorts. An entity controlled by Ho will grant an over-allotment option to the underwriters equal to up to 3 percent of the shares of MGM China, the exercise of which will reduce her holdings further to 26 percent.
Bank of America Corp., JPMorgan Chase & Co. and Morgan Stanley are the global coordinators for the sale, according to an analysis of the prospectus by Bloomberg. BNP Paribas, CLSA Ltd., Deutsche Bank AG and Royal Bank of Scotland Group Plc are joint bookrunners, the document shows. Ho, 48, is chairwoman and executive director of MGM China. Paulson & Co., the $36 billion hedge fund founded by John Paulson, agreed to buy $75 million of shares in MGM China's initial offering, according to the prospectus. MGM Resorts founder and biggest shareholder Kirk Kerkorian and a trust fund controlled by Hong Kong property magnate Walter Kwok also committed to buying stock.
MGM China Holdings IPO to sell at top end of price range
May 27, 2011