MGM China public offering raises US$1.4bn

MGM China has raised approximately US$1.4bn from an initial public offering of 760 million shares.

MGM Resorts International, Pansy Ho and MGM China completed the IPO at an offer price of HK$15.34 ($1.97) per share.

MGM China used the proceeds of the offering to repay a previously issued acquisition note to Grand Paradise Macau, an affiliate of Pansy Ho, as part of a reorganisation of its shareholding structure. As part of this restructuring, MGM resorts acquired one per cent of the overall capital stock of MGM China, becoming the indirect owner of 51 per cent of the company.

"The completion of MGM China’s IPO represents a multi-layered restructuring of our relationship with Pansy and is an important step to increasing the global reach of MGM Resorts International, said MGM chairman and chief executive officer, Jim Murren. "As a result of these transactions, MGM Resorts will record a significant gain in the second quarter and will now begin to consolidate MGM China’s results."

MGM China, he said, is now in a position to play an even greater role in the future growth of MGM Resorts.