Macau (MNA) – Melco International Development Limited announced that it has initiated the Initial Public Offering (IPO) for its Studio City property, and that it expects it will raise as much as US$359.38 million.
In an announcement to the U.S. Securities and Exchange Commission (SEC), Melco indicates that it plans to sell 28,750,000 American Depositary Shares (ADSs) and generate gross proceeds between US$301.88 million and US$359.38 million, based on a preliminary offer price range for the of between US$10.50 and US$12.50 per ADS.
MCE Cotai – a wholly owned subsidiary of Melco Resorts and currently the holder of 60 per cent of Studio City – and certain affiliates of New Cotai – which holds the remaining 40 per cent – have indicated interest in purchasing up to an aggregate of 25,550,000 ADSs or 88.9 per cent of the total.
Melco Resorts indicated that it will remain as Studio City’s majority shareholder, and that Melco International Development Limited indirect interest in Melco Resorts will not be affected by the IPO.
Melco International proposes to make a distribution equal to approximately 1.5 per cent of the gross proceeds to its shareholders, with the group’s CEO, Lawrence Ho Yau Lung, and his associates holding approximately 53.60 per cent of the total issued shares.