UPDATE 2-Sands, Minsheng get OK for $6 bln IPOs-sources

Fri Oct 30, 2009 5:27am EDT
 
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* Minsheng Bank and Sands get OK for HK IPO - sources

* Goldman, Citi, UBS coordinators for Sands IPO - sources * Minsheng and Sands aim to start roadshow on Nov. 9 (Wraps up Minsheng and Sands' IPOs, adds brokerage comment)

By Kennix Chim and Michael Flaherty

HONG KONG, Oct 30 (Reuters) - Las Vegas Sands (LVS.N) and China's Minsheng Banking Corp have won approval from the Hong Kong stock exchange for more than $6 billion in combined initial public offerings, sources said on Friday, as the companies try to cash in on an IPO window that may be slowly shutting.

Minsheng Banking Corp (600016.SS), China's first listed non-state lender, aims to raise more than $4 billion in an IPO, sources involved with the deal said, which could make it the fourth largest IPO in the world so far this year.

At the same time, Las Vegas Sands plans to raise $2 to $3 billion by listing the gaming company's Macau unit on the Hong Kong exchange, sources said.

"Banking IPOs draw investor appetite so as to tap China's booming economy," said Alex Tang, director at Core Pacific-Yamaichi International.

Tang pointed out, however, that Minsheng would not escape the rising pressure on Hong Kong IPOs lately. "But those IPOs should price at a discount to peers amid the volatile Hong Kong stock market."

A spokesman for Las Vegas Sands was not immediately available for comment. Minsheng was not immediately available for comment.

Minsheng's IPO move came after the Beijing-based lender failed to launch its Hong Kong IPO at least twice in the past few years due mainly to unfavourable market conditions.

The mid-size lender expects to issue up to 15 percent of its enlarged capital, or up to 3.32 billion shares. There will be a greenshoe option to increase the issue by an additional 15 percent.

The bank aims to kick off the roadshow for its Hong Kong offering on Nov 9, the sources said. Minsheng's trading debut is set for Nov. 26, according to a source directly involved in the deal.

UBS (UBSN.VX), China International Capital (CICC), BOC International and Macquarie (MQG.AX) are handling Minsheng's deal.

Minsheng Bank's shares ended Friday trade in Shanghai at 7.68 yuan, up about 2 percent.

CASHING IN ON MACAU

Sands will kick off pre-marketing next week and start its marketing roadshow on Nov. 9, with a trading debut set for the end of November, according to sources with direct knowledge of the deal.  Continued...

 

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