Casino owner Macau Legend Development Ltd postponed an up to $786 million initial public offering in Hong Kong, sources mentioned on Friday, the newest casualty of volatile global markets which could claim other IPO hopefuls within the area.
The deal was the third to be delayed in Hong Kong within a month, adding stress on an up to $1 billion listing from NW Hotel Investments. The market tumble may also put stress on an up to $800 million genuine estate investment trust (REIT) listing by Overseas Union Enterprise (OVES.SI) in Singapore.
Concerns more than a worsening money squeeze in mainland China hit Hong Kong and Chinese equity markets tough on Friday, complicating matters additional for corporations planning to sell shares in Greater China.
Macau Legend follows Hopewell Hong Kong Properties Ltd (0288.HK) and auto parts maker Mandy China Holdings Ltd (1356.HK), controlled by South Korea’s Mandy Corp (060980.KS), in postponing almost $1.84 billion of listings in Hong Kong.
Macau Legend and shareholders Lam Fog Neo and Grand Vibrant had planned to sell two.05 billion shares and had tapped Dynamo Hong Kong Co. Ltd, a unit of Japan’s biggest pachinko operator Dynamo Japan Holdings Co. (6889.HK), as a cornerstone investor using a $35 million stake.
The organization and its bankers met with almost 300 investors worldwide to pitch the IPO, but decided to restructure the supplying due to worsening international markets, said the sources, who were not authorized to speak publicly.
A single in the sources stated the structure of the deal might be changed and the business will make an announcement subsequent week.
CASA and Citi Securities Co Ltd (6030.HK)(600030.SS), were hired as joint worldwide coordinators, with Credit Suisse Group AG (CSGN.VX) also acting as a joint bookrunner on the IPO.