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NEW YORK — Casino operator Wynn Resorts Ltd. will increase the size of its Hong Kong initial public offering for its Macau casino assets, as it looks to raise up to HK$12.6 billion ($1.63 billion), according to published reports.
The news comes as the Las Vegas-based company looks to the island of Macau for revenue growth, amid signs that China may lift visa restrictions, which could flood the gambling enclave with customers. Macau, located southwest of Hong Kong, is the only place in China where gambling is legal and is now the world's top gambling market.
Wynn Resorts, run by billionaire and major stockholder Steve Wynn, has a resort under construction in Macau in addition to its other properties. The $700 million Encore at Wynn Macau, due to open next year, is expected to include 600 rooms and suites along with casino, restaurant, retail and lounge space.
Wynn Resorts now plans to sell 25 percent of its Macau unit, The Wall Street Journal reported Sunday, citing an unnamed person familiar with the matter. This boosts expected proceeds to $1.63 billion, up from original plans to raise up to $1 billion.
This weekend the company set a price range of between HK$8.52 and HK$10.08 per share for the IPO. The company is offering 1.25 billion shares and the listing is scheduled for Oct. 9. According to the paper, the IPO already has the backing of several high-profile Hong Kong tycoons, who plan to invest a total of about $250 million.
The company filed for the IPO in July, a move that rival Las Vegas Sands Corp. followed a few weeks later. The Sheldon Adelson-led casino operator said in a Securities and Exchange Commission filing last month that no decisions have been made on the timing or terms of any offering.
Las Vegas Sands owns the Venetian and Palazzo hotel-casinos on the Las Vegas Strip, as well as Sands Macao, Venetian Macau and Sands Casino Resort Bethlehem in Pennsylvania, among other properties. Las Vegas Sands is also developing resorts on the Cotai strip, a short drive from Macau's main casino area.
