HK regulators issue comment letter about MGM Macau’s IPO

The Listing Committee of Hong Kong Exchanges & Clearing Ltd. has issued a comment letter regarding MGM Macau’s initial public offering. The information was confirmed by MGM Resorts International, which also confirmed it held a meeting on April 28 with the regulator to consider the application for the proposed listing. “The listing committee has issued a comment letter as a part of their ongoing review process,” the company said. “MGM China continues to work closely with the Hong Kong Stock Exchange to address all remaining items in order to achieve a prompt listing of its shares”. According to MGM Resorts, “the timing or terms of any such listing have not yet been determined, and there is no assurance as to whether MGM China will ultimately proceed with the listing, or whether the application will be approved.” According to media reports, the Hong Kong regulators want more info on the IPO, namely on the shareholder changes included. MGM Macau’s initial public offering will be done through a vehicle registered in the Cayman Islands, MGM China Holdings Ltd. The listing will mean big changes in the shareholding structure of the company, according to a deal reached last month between MGM Resorts and businesswoman Pansy Ho Chiu King. After the IPO, MGM Resorts will own 51 percent of the company and have management control. Ms Ho will retain 29 percent, while the shareholding public will own 20 percent. At present, MGM Resorts and Ms Ho each own 50 percent of MGM Macau.