It's official: The IPO for the Macau operations of Las Vegas Sands will be taken up by the Hong Kong stock exchange. The company hopes to raise up to $3.83 billion as a result of the offering.

Soon after the details of the IPO were released, the Wall Street Journal reported that the company will resume construction on parcels 5 and 6 on the Cotai Strip. In the filing, Las Vegas Sands said it will use the revenue to buy down part of its $11 billion in debt and re-start construction on the remainder of its Cotai Strip project across from the Venetian and the Four Seasons in Macau. Construction has been halted on the St. Regis, Shangri-la and Sheraton hotels, along with three more casinos and retail space since late last year when the company was struggling to repay debt.

The planned offering by LVS comes a few weeks after a similar offering from Wynn Resorts for a portion of its Macau operations. Wynn netted more than $1.6 billion, but has not indicated how it plans to use the money. MGM Mirage has also indicated it is considering an IPO for its Macau operations, which it runs in partnership with businesswoman Pansy Ho.

In a report accompanying the IPO, Las Vegas Sands projects 2009 adjusted EBITDAR of $803 million. Net revenue in 2008 for Las Vegas Sands in Macau was $3.053 billion and adjusted EBITDAR was $686 million, up 55.3 percent and 33.4 percent, respectively, from 2007.

Also on the Cotai Strip, Galaxy Entertainment said it will re-start construction on its GalaxyWorld development, adjacent to the LVS' Venetian Macao. Construction on the 5.9 million-square-foot facility had slowed to a crawl in the last year as the Macau gaming economy slumped.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.