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The Macau Metro Monitor.  November 10th, 2009


ADELSON MARKETS SANDS CHINA IPO TO INVESTORS scmp.com

Sands China is seeking to raise as much as HK$25.96 billion from Hong Kong’s second-largest stock market listing this year behind China Minsheng Banking Corp’s planned share sale.  The Macau company said it had secured commitments from lenders for US$1.45 billion of the US$1.75 billion being sought in new debt financing, according to a pre-listing document posted yesterday.

Sands China plans to use the new project financing loans to complete Lots 5&6.  Commentators are unsure that the market will support the 16.5x 2010E EBITDA multiple being sought for the shares.

MACAU’S GAMBLING INDUSTRY FACES NIGHTMARE OF WATER RATIONING timesonline.co.uk

Macau may be forced to ration drinking water as reservoirs run dry.  There are signs that non-essential supplies may be cut off as early as this weekend.  Some suggest that Macau only has ten days of fresh water left.  Macau’s usual water sources have been depleted by drought and, unless a deal is struck with water companies in Guangdong province, rationing could come into effect. 

Hong Kong struck a deal with Guangdong province last year that would guarantee water supplies.  Macau’s government may seek to strike a similar deal to protect its main revenue source from the impact of the drought.