Studio City International Holdings Limited has received total proceeds of US$406.7 million from its initial public offering (IPO) of American Depositary Shares, the company’s majority shareholder Melco Resorts and Entertainment announced on Thursday.
Melco had previously declared proceeds of US$359 million but has revised that number upwards after the underwriters of its IPO exercised an over-allotment option in full to purchase an additional 4,312,500 ADSs from Studio City at the IPO price of US$12.50 per share. The exercise of the over-allotment option closed on Monday 19 November.
The total number of ADSs sold in the IPO following the over-allotment is 33,062,500, Melco said.
The company has previously stated that the capital raised will be used to acquire newly issued shares in Melco subsidiary MSC Cotai Limited, which holds a 60% stake in Studio City. MSC Cotai Limited will subsequently use those proceeds to repay debt.