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October 26, 2021

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Las Vegas Sands expects $3.35B from Asian IPO

Sands China Ltd., the Macau gambling district arm of Las Vegas Sands Corp., today said it plans to raise up to $3.35 billion in an initial public stock offering.

Las Vegas Sands and Sands China today said the planned offering on the Hong Kong exchange consists of 1.87 billion shares, priced between HK$10.38 and HK$13.88 each (U.S. $1.34-$1.79).

Bloomberg reported the sale planned for later in the month for a 23.4 percent stake in Sands China values the unit at as much as HK$111 billion, or 16.6 times next year’s estimated earnings before interest, tax, depreciation and amortization.

The Wall Street Journal reported a provision of the deal could boost Sands' take to $3.83 billion.

This would be the Hong Kong exchange's second-largest IPO this year and would be larger than that of the $1.87 billion raised by Wynn Macau Ltd. for its Chinese expansion plans.

Las Vegas Sands Chairman and Chief Executive Sheldon Adelson intends to use funds from the Hong Kong IPO to repay debt and restart stalled construction projects.

Even as Las Vegas Sands grows in China, the company said in a regulatory filing today that work on its high-rise residential condominium tower in Las Vegas, the St. Regis Residences, will remain suspended until the economy turns around. The St. Regis is at the company's Venetian and Palazzo resort complex on the Las Vegas Strip.

The company's operating assets in Macau are the Venetian Macao, the Sands Macao and the Plaza, a resort with a Four Seasons Hotel and the Plaza Casino.

Revenue in 2008 for Las Vegas Sands in Macau was $3.053 billion and adjusted EBITDAR -- a profitability measure -- was $686 million, up 55.3 percent and 33.4 percent, respectively, from 2007.

Sands has projected 2009 adjusted EBITDAR of $803 million from its Macau operations.

In the third quarter, revenue at the Venetian Macao fell 5.5 percent to $493.6 million, but rose 13 percent to $280.8 million at Sands Macao and was up 37.8 percent to $67.1 million at the Four Seasons Macao and Plaza Casino.

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