Sands' Asia IPO Generates $2.8 Billion, Lower Than Expectations

No matter what the outcome of the initial public offering for Las Vegas Sands Macau in Asia, there was going to be a celebration. On Saturday, however, that celebration turned out to be less attractive than projected.

The IPO for Sands reached $2.8 billion, which for most companies would be considered a victory. For Sands, however, it was a disappointment. Sands had hoped to raise upwards of $3.5 billion with the IPO.

Sands followed Wynn Resorts into the Hong Kong market, and that may have ended up hurting the company in the long run. Wynn raised $1.6 billion with their IPO, but after that they struggled to keep a solid share figure.

"Investors are cautious investing in Sands China, because the post-market performance of Wynn Macau was disappointing," said Peter Pak, Vice President at BOCI Research Ltd.

Sands had been hoping that their initial investment in the Macau gambling market would drive a higher IPO in Asia. Sands was the first US casino company into the market in Macau, and they are preparing to restart another project in Macau with the funds generated from the IPO.

In the US, gaming companies have been struggling with their stock prices since the economic recession. The stock market crash has hurt the casino gaming industry as much as any other in the country.

November 21, 2009
Posted By Vincent Tapoglia III
Staff Editor, CasinoGamblingWeb.com
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