Wynn increases size of Asian stock offering

21 Sep 2009

Las Vegas Sun

LAS VEGAS, Nevada -- Wynn Resorts Ltd. filed paperwork Monday confirming reports it has increased the size of its initial public stock offering for a stake in its Chinese gaming operations.

The Las Vegas company said in a Securities and Exchange Commission filing that over the weekend it priced the proposed offering of 1.25 billion shares of Wynn Macau Ltd. on the Hong Kong Stock Exchange at between $1.10 and $1.30.

The sale is for about 25 percent of Wynn's stake in its Macau businesses, up from the earlier-reported 20 percent.

The pricing and new offering size would raise between $1.375 billion and $1.625 billion, up from the initially reported plan to raise about $1 billion by selling a 20-percent stake in Wynn's Macau gaming and hotel operations.

Observers have said investors are eager to buy the shares, prompting Wynn to boost the size of the offering. If all goes as planned, trading in the shares would begin next month. Wynn would use the cash from the offering partly to finance additional development in Macau.

The news comes as Reuters reported Monday the Chinese government has quietly eased restrictions on travel to Macau from neighboring Guangdong province, lifting the price of several gaming stocks with exposure to Macau.

Reuters reported China's government was alarmed last year that Guangdong residents were gambling too much in Macau, so it limited trips there to two per year.

But authorities have been easing up on the rule, casino executives told Reuters for a story today.

The travel restrictions as well as the worldwide recession have hurt Macau casino and hotel operators. Wynn has reported that for the six months ending June 30, its operations there generated revenue of $859 million, down from $1.021 billion in the year-earlier period.

Earnings before interest, taxes, depreciation and amortization, a key performance measure, fell from $284.6 million to $232 million.

In Macau, Wynn operates the luxury 600-room Wynn Macau, is building the 400-suite Encore at Wynn Macau and plans additional development on a 52-acre parcel in Macau's Cotai area.

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	Wynn increases size of Asian stock offering 21 Sep 2009 Las Vegas Sun LAS VEGAS, Nevada -- Wynn Resorts Ltd. filed paperwork Monday confirming reports it has increased the size of its initial public stock offering for a stake in its Chinese gaming operations. The Las Vegas company said in a Securities and Exchange Commission filing that over the weekend it priced the proposed offering of 1.25 billion shares of Wynn Macau Ltd. on the Hong Kong Stock Exchange at between $1.10 and $1.30. The sale is for about 25 percent of Wynn's stake in its Macau businesses, up from the earlier-reported 20 percent. The pricing and new offering size would raise between $1.375 billion and $1.625 billion, up from the initially reported plan to raise about $1 billion by selling a 20-percent stake in Wynn's Macau gaming and hotel operations. Observers have said investors are eager to buy the shares, prompting Wynn to boost the size of the offering. If all goes as planned, trading in the shares would begin next month. Wynn would use the cash from the offering partly to finance additional development in Macau. The news comes as Reuters reported Monday the Chinese government has quietly eased restrictions on travel to Macau from neighboring Guangdong province, lifting the price of several gaming stocks with exposure to Macau. Reuters reported China's government was alarmed last year that Guangdong residents were gambling too much in Macau, so it limited trips there to two per year. But authorities have been easing up on the rule, casino executives told Reuters for a story today. The travel restrictions as well as the worldwide recession have hurt Macau casino and hotel operators. Wynn has reported that for the six months ending June 30, its operations there generated revenue of $859 million, down from $1.021 billion in the year-earlier period. Earnings before interest, taxes, depreciation and amortization, a key performance measure, fell from $284.6 million to $232 million. In Macau, Wynn operates the luxury 600-room Wynn Macau, is building the 400-suite Encore at Wynn Macau and plans additional development on a 52-acre parcel in Macau's Cotai area. Copyright © Las Vegas Sun. Inc. Republished with permission.