(Corrects underwriters' names in last paragraph)
By Vikram Subhedar and Elzio Barreto
HONG KONG, June 21 Casino owner Macau Legend
Development Ltd postponed an up to $786 million
initial public offering in Hong Kong, sources said on Friday,
the latest casualty of volatile global markets which could claim
other IPO hopefuls in the region.
The deal was the third to be delayed in Hong Kong in a
month, adding pressure on an up to $1 billion listing from NW
Hotel Investments. The market tumble will also put pressure on
an up to $800 million real estate investment trust (REIT)
listing by Overseas Union Enterprise in Singapore.
Concerns over a worsening cash squeeze in mainland China hit
Hong Kong and Chinese equity markets hard on Friday,
complicating matters further for companies looking to sell
shares in Greater China.
Macau Legend follows Hopewell Hong Kong Properties Ltd
and auto parts maker Mandy China Holdings Ltd
, controlled by South Korea's Mandy Corp,
in postponing nearly $1.84 billion of listings in Hong Kong.
Macau Legend and shareholders Lam Fog Neo and Grand Bright
had planned to sell 2.05 billion shares and had tapped Dynamo
Hong Kong Co. Ltd, a unit of Japan's largest pachinko operator
Dynamo Japan Holdings Co., as a cornerstone investor
with a $35 million stake.
The company and its bankers met with nearly 300 investors
around the world to pitch the IPO, but decided to restructure
the offering because of worsening global markets, said the
sources, who were not authorized to speak publicly.
One of the sources said the structure of the deal will be
changed and the company will make an announcement next week.
CLSA and Citic Securities Co Ltd , were
hired as joint global coordinators, with Credit Suisse Group AG
also acting as a joint bookrunner of the IPO.
(Reporting by Vikram Subhedar and Elzio Barreto; Editing by
Stephen Coates, Michael Flaherty and Michael Perry)