Inside Asian Gaming

39 40 n December 19,Melco PBL Entertain- ment (Macau) Ltd raised US$1.14 billion from the sale of 60.3 million American depositary shares at US$19 each on the Nasdaq Stock Market. Hong Kong stock market regula- tors had originally denied permission to list the venture on Nasdaq, but undeterred, Melco PBL re-submitted their application, and received the go-ahead the second time around. Melco PBL is a joint venture between Hong Kong-listed Melco International De- velopment, headed by Lawrence Ho, son of Macau casino tycoon Stanley Ho, and James Packer’s Australia-listed Publishing & Broad- casting Ltd (PBL). James Packer, 39, assumed control of PBL and became Australia’s richest Cash in Hand Melco PBL raises over US$1 billion on Nasdaq to fund its ambitious Macau gaming projects man following the death of his father Kerry in 2005. Melco and PBL formed the 50-50 joint venture in 2005 in order to pursue gaming, entertainment and hospitality business op- portunities in China and the rest of Asia. Melco PBL plans to invest US$3.31 bil- lion over five years building three casino resorts and an apartment complex in Ma- cau. US investors demonstrated strong ap- petite for the Macau-play on the back of the strong showing of Macau properties from US-listed Las Vegas Sands Corp and Wynn Resorts, which have benefited from soaring visitor arrivals and gaming revenues in Ma- cau – the only part of China where casinos are legal. Melco PBL said in a December 1 filing that it will use about US$514 million of its Nasdaq IPO proceeds to repay, with interest, a US$500 million loan used to buy a Macau gaming subconcession for US$900 million fromWynn Resorts in March. It was the sixth and final casino license up for grabs in Ma- cau. Previously, Melco PBL relied on lease agreements with Stanley Ho’s Sociedade de Jogos de Macau (SJM) to operate its gam- ing projects and businesses. Buying the sub- concession allows the venture to own and operate hotel casino resorts in Macau, with- out having to give a share of the revenues to SJM. Melco PBL formalized its independence from 85-year-old Stanley Ho in November when the elder Mr Ho sold his 4.3% stake in O City of Dreams