Las Vegas Sands Sets Terms for Planned IPO
The company that owns the Venetian resort in Las Vegas is aiming for an initial public offering price of $20 to $22 a share, according to documents filed Monday with the Securities and Exchange Commission.
The company, to be known as Las Vegas Sands Corp. when it goes public, said it planned to sell more than 23.8 million shares of stock and give underwriters the option to purchase an additional 3.5 million shares.
After deducting underwriting discounts and other expenses, company executives expect to raise about $466 million, or about $537 million if underwriters exercise their full option. The stock would trade on the New York Stock Exchange under the symbol LVS.
The privately held company, now Las Vegas Sands Inc., is hoping to cash in on investors’ strong interest in casino-related shares this year.
Executives disclosed in the SEC filing that the company could have a market capitalization of $6.8 billion, making it the third-largest gambling company in the world, behind Harrah’s Entertainment Inc. and MGM Mirage Inc.
Proceeds from the offering would be used to build the $1.6-billion, 3,000-room Palazzo mega-resort on the Las Vegas Strip next to the highly profitable Venetian. The Palazzo is expected to open in 2007.
The combined Palazzo, Venetian and Sands Expo and Convention Center would be the largest resort and hotel complex in the world, with more than 7,000 hotel rooms and suites.
Some of the money also could be used to construct the company’s next Far East venture, the Macao Venetian Casino Resort, and pay for projects in the United Kingdom, where gambling laws are being relaxed.
In May, Las Vegas Sands opened the $240-million Sands Macao, the first Las Vegas-style casino in the Chinese enclave.
Las Vegas Sands is controlled by entrepreneur and billionaire Sheldon Adelson, who founded the Comdex technology trade show before buying Sands in 1989. He sold Comdex in 1995.
The SEC filing shows that Adelson would retain significant influence over the business. After the offering is completed, Adelson and trusts for him and his family would own about 88% of the outstanding stock.
Separately on Monday, a unit of Wynn Resorts Ltd., which is building a major new resort near the Venetian in Las Vegas, said it had raised $1.3 billion via the sale of 10-year mortgage notes. The deal size was increased from a planned $1.1 billion.
Wynn shares fell 88 cents to $57.52 on Nasdaq. They have soared 105% this year.
