Macau casino SJM unchanged in Hong Kong IPO debut

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HONG KONG, July 16 (Reuters) - Shares in Macau tycoon Stanley Ho's casino flagship SJM Holdings Ltd (0880.HK) were set to open unchanged in their market debut on Wednesday after it raised $494 million in a Hong Kong initial public offering.

SJM overcame a last-minute legal challenge by Stanley Ho's estranged sister, but many retail investors took up an offer to get refunds for their share subscriptions amid the legal uncertainty.

Retail investors in the offering withdrew more than half the orders for shares allotted to them, leaving the offering undersubscribed. Underwriter Deutsche Bank took up the shortfall and entered derivatives agreements with investors to take on any economic benefit or loss from the shares.

Shares in SJM were indicated at HK$3.08 in pre-market trade, unchanged from an IPO price of HK$3.08 per share, which was at the bottom of its indicated range.

SJM sold 1.25 billion shares, or 25 percent of its enlarged share capital, in a deal handled by Deutsche Bank (DBKGn.DE).

The firm, which owns the Lisboa and Grande Lisboa casinos in Macau, had hoped to raised $1 billion in an IPO in January, but shelved the plan amid a weak stock market and queries made by regulators regarding the shareholding structure of SJM's parent.

(US$1=HK$7.8)

(Reporting by Kennix Chim; Editing by Anne Marie Roantree)