Casino owner Macau Legend delays HK IPO as markets tumble

HONG KONG, June 21:  Casino owner Macau Legend Development Ltd postponed an up to $786 million initial public offering in Hong Kong, sources said on Friday, the latest casualty of volatile global markets which could claim other IPO hopefuls in the region.
The deal was the third to be delayed in Hong Kong in a month, adding pressure on an up to $1 billion listing from NW Hotel Investments. The market tumble will also put pressure on an up to $800 million real estate investment trust (REIT) listing by Overseas Union Enterprise in  Singapore.
Concerns over a worsening cash squeeze in mainland China hit Hong Kong and Chinese equity markets hard on Friday, complicating matters further for companies looking to sell shares in Greater China.
Macau Legend follows Hopewell Hong Kong Properties Ltd and auto parts maker Mandy China Holdings Ltd , controlled by South Korea’s Mandy Corp, in postponing nearly $1.84 billion of listings in Hong Kong.
Macau Legend and shareholders Lam Fog Neo and Grand Bright had planned to sell 2.05 billion shares and had tapped Dynamo Hong Kong Co. Ltd, a unit of Japan’s largest pachinko operator Dynamo Japan Holdings Co., as a cornerstone investor with a $35 million stake.
The company and its bankers met with nearly 300 investors around the world to pitch the IPO, but decided to restructure the offering because of worsening global markets, said the sources, who were not authorized to speak publicly.
One of the sources said the structure of the deal will be changed and the company will make an announcement next  week.
CASA and Citi Securities Co Ltd , were hired as joint global coordinators, with Credit Suisse Group AG also acting as a joint bookrunner of the IPO. (AGENCIES)


Please enter your comment!
Please enter your name here