MGM Mirage Pursuing Hong Kong IPO

31st Dec 2009
MGM Mirage Pursuing Hong Kong IPO

MGM Mirage is pursuing an initial public offering in Hong Kong that could generate between US$300 million and US$500 million from the sale of a 20% to 30% stake. A launch date for the IPO has not yet been set.

The news appears in a research note issued Tuesday by Oppenheimer & Co. hospitality analyst David Katz. “Management indicated it is pursuing an HK IPO, with which its JV is in support. The company also expects to generate $300-$500M for MGM from the sale of a 20%-30% stake, which implies a relatively high multiple compared with other deals’. We view this as a less significant catalyst than MGM’s domestic issues.”

Katz reports that a further equity offering is unlikely in the near term for MGM Mirage, “as the availability of additional unsecured debt and prospective operating improvement should be adequate.” MGM stock will continue feeling pressure due to ongoing capital obligations, he adds.

In this video interview during Las Vegas CityCenter’s opening celebration earlier this month, MGM Mirage CEO James Murren discussed the company’s US$8.5 billion venture and aVegas recovery that he believes is already under way.



Recommended for you

Follow Breaking Travel News

Travel Events Calendar

Media Partnerships

Global Restaurant Investment ForumThe Hospitality & Tourism SummitCATHIC
ITB AsiaChina Outbound Travel & Tourism MarketThe Travel Marketing Store
Serviced Apartment SummitWorld Travel MarketIMEX
AHICWTTCRoutes Online
UBM Aviation