WYNN MACAU IPO PRICED AT TOP OF RANGE - SOURCES reuters.com
STRONG WYNN MACAU IPO PUTS PRESSURE ON DEBUT, RIVALS reuters.com
Despite a recent “glut of Asian stock deals”, Wynn Resorts sold 1.5 billion Hong Kong listed shares in its Asian IPO at the top of its price range to raise $1.63 billion. The IPO’s range was HK$8.52 to HK$10.08, with Wynn selling 25% of the business to the public. Some commentators are see valuations as being too high and believe that a strong debut will be difficult for Wynn. Wynn’s successful sale will now put pressure on Las Vegas Sands ahead of their public offering at the end of November or early December.
REVENUE FROM CASINO TAXES FALLS 9.5% macaunews.com.mo
The Finance Services Bureau announced that the government’s income from direct gaming taxes fell 9.5% in the first eight months of the year when compared to the same period in 2008. Gaming taxes accounted for 73.6% of the government’s total receipts during the same period, as compared to a share of 80.2% in the same period of last year.
DEVELOPER GOES BACK TO BASICS scmp.com
LVS’ halting of their construction projects on Macau’s Cotai Strip brought the city’s explosive construction activity to a standstill. Some real estate funds, such as Telok Macau Real Estate Fund, are now focusing on going “back to basics” and building residential projects rather than the large “glamour projects” that typified the construction boom of a few years ago. Genevia Lam, a VP at Telok, says that the developers at the time ignored the reality that the luxury apartments, measuring from 1,200 to 2,700 square feet and priced at upwards of HK$3 million each, were “beyond the reach of the general public.”
To get back to basics, Telok Macau Real Estate Fund is building a residential project, scheduled for completion in October 2010, where units will be prices between HK$1.3 million and HK$3.5 million or at an average of HK$3,000 per square foot. Commentators are predicting that mass residential prices in Macau will rise to between HK$3,500 and HK$4,000 per square foot from the present average of HK$2,800 per square foot. Residential prices in Macau are said to be 30% below the market peak of December 2007.
CAUSE FOR CELEBRATION scmp.com
Tomorrow is the 60th anniversary of the establishment of the People’s Republic of China.