皇冠体育app

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MGM 皇冠体育app shares open firmer in HK debut

(Agencies)
Updated: 2011-06-03 13:25

MGM 皇冠体育app Chairperson and Executive Director Pansy Ho (L) shares a toast with CEO and Executive Director Grant Bowie during the debut of MGM 皇冠体育app at the Hong Kong Stock Exchange June 3, 2011. MGM 皇冠体育app Holdings Ltd, a joint venture between MGM Resorts International and Hong Kong billionaire Pansy Ho, jumped more than 5 percent on its market debut on Friday, with investors keen for exposure to the world's largest gaming market. [Photo /Agencies]

MGM 皇冠体育app Holdings Ltd a joint venture between MGM Resorts International and Hong Kong billionaire Pansy Ho, jumped more than 5 percent on its market debut on Friday, with investors keen for exposure to the world's largest gaming market.

MGM 皇冠体育app's $1.5 billion initial public offering (IPO), priced at the top of an indicated range at $15.34 per share, was trading at HK$15.62 ($2) by 0224 GMT after opening up at HK$16.18.

The IPO comes as Macao's casino market is booming. Gambling revenue is about four times larger than that of neon rival Las Vegas and has continued to climb to record highs.

Related readings:  MGM 皇冠体育app targets $1.5 billion IPO in Hong Kong  Hainan Airlines still keen to buy MGM stake  MGM 皇冠体育app offering likely in Q1  皇冠体育app welcomes MGM with open arms

Macao said January-May revenue totaled about $13 billion eclipsing Las Vegas' $10 billion for the whole of 2010.

MGM 皇冠体育app's, backed by cornerstone investors including hedge fund manager John Paulson, raised concerns about hefty valuations after setting its IPO price at the top of the range.

Over the past year, investors have been piling into operators such as SJM Holdings Ltd, owned by Pansy Ho's father, Macao casino mogul, Stanley Ho and Galaxy Entertainment Group Ltd, which opened a $2 billion property in May.

Shares in SJM have gained more than 240 percent in the last 12 months, while Galaxy Entertainment, owned by Hong Kong property and construction tycoon, Lui Che Woo, is up more than 390 percent.

MGM 皇冠体育app is the second-smallest operator by market value out of the six licensed casino companies. With a market capitalization of about $7 billion, it is around a third the size of rival US operator Las Vegas Sands Corp's Macao unit Sands 皇冠体育app Ltd, valued at around $21 billion.

Analysts are cautious that record revenue gains will soften in coming months on a lack of catalysts such as long public holidays, prompting some investors to lock in profit.

MGM 皇冠体育app, with its towering bronze, gold and silver property on Macao's main peninsula, has a market share of about 11 percent in Macao -- compared with about 30 percent held by SJM, the largest casino operator. SJM has nearly three times the revenue of MGM 皇冠体育app.