THE M3: MGM IPO; MIN WAGE BILL; GALAXY-MOODY'S-S&P

The Macau Metro Monitor, May 9, 2011


MGM CHINA NOW SEEKING TO RAISE UP TO US$1.5 BLN IN HK IPO-SOURCE WSJ, Apple Daily

MGM wants to raise between US$1BN to $1.5BN for its HK IPO, which is 3x what it had sought in a 2010 listing.  MGM China has begun pre-marketing for the deal and aims to launch its roadshow on May 17 and start its Hong Kong retail offering on May 23, the person said. The person added the company aims to list on the Hong Kong stock exchange on June 3.

Meanwhile, Hong Kong’s Apple Daily newspaper reports that the size of the offering is likely to be cut by 20% to US$800 million because of uncertain market conditions. The newspaper cites market sources.

GOVERNMENT PRESENTS BILL TO INCREASE MINIMUM AGE TO ENTER CASINOS macaubusiness.com, Intelligence Macau

There is a new Macau bill that will increase the minimum age for entering casinos from 18 to 21 years.  If someone under 21 years old wins a prize inside a casino, the bill states the money should be forfeit to the government.  The proposed age limit will cover both players and casino workers. However, those employees aged less than 21 years when the bill is enacted will be exempted.

IM believes this bill should be taken seriously as it will be another labor restriction, but Wynn Macau will be the least affected. 

GALAXY ENTERTAINMENT GROUP CLARIFICATION STATEMENT ON RATING AGENCY RELATIONSHIPS Galaxy Entertainment Group

Galaxy Casino has not renewed its engagements with Moody’s Investors Service and Standard & Poor’s corporate ratings services after the early redemption of its 2010 and 2012 bonds.  Galaxy clarified that it, not Moody's, initiated this termination.  Galaxy Macau remains on schedule and on budget to open on May 15, 2011.