October 30, 2009 / 4:45 AM / 10 years ago

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

* 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.


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.

None of the sources could be named because they were not authorised to speak publicly about the offering.

Goldman Sachs (GS.N), Citigroup (C.N) and UBS AG UBSN.VX are the joint global coordinators for the IPO, according to the sources. All three banks are also bookrunners for the deal, along with BNP Paribas (BNPP.PA) and Barclays (BARC.L).

The Nevada-based group, operator of the Venetian Resort in Las Vegas, is seeking to list its Macau business on the Hong Kong Stock Exchange to boost the value of its overall business.

The gaming and casino company run by Sheldon Adelson has struggled with a heavy debt load, and is looking to seize on an opportunity to have a publicly traded division in Hong Kong at a time when the IPO window is still open.

Sands reported a wider third-quarter net loss on Thursday but said business may have bottomed in Las Vegas and shares rose more than 9 percent. [ID:nN29379049]

Fellow Las Vegas gaming company, Wynn Resorts (WYNN.O), listed its Macau unit earlier this month, raising $1.63 billion.

The multi-billion dollar offerings have had banks scrambling to get a role in the IPOs.

Reuters reported on Thursday that CLSA and Goldman are joint sponsors for the Sands IPO. The different roles for banks in an IPO bring varying degrees of responsibilities and fees, but all result in the coveted league table credit for marketing purposes to future IPO clients. (Editing by Jacqueline Wong and Muralikumar Anantharaman)

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