Resorts World Manila has become the second regonal gaming operator in a week to fall victim to the recent slump in the Hong Kong and Philippine stock markets.
The Wall Street Journal reports that RWM, a popular mixed-use gaming complex adjoining Manila’s international airport, has put a proposed US$500 million initial public offering on hold as investors across the region have turned lukewarm on new share issues and are pulling out of developing economies.
Concerns mostly center on slowing growth in China and the possibility of the US Federal Reserve cutting back on its massive bond-buying program, which had contributed to huge capital inflows into emerging markets such as the Philippines, Indonesia and Thailand and has sent jitters through stock markets around the world. In the past month, the HKSE has fallen 10%, and the PSX is down 13%, one month after it had been the top performer in the region this year aside from Japan. The PSX is currently up 5.3% year to date, while Hong Kong is down 10%. The Thai market is up 2.3% year to date, while Indonesia is up 6.3%. Both were up more than 10% until last month.
Macau Legend Development, a gaming, leisure and hospitality operator partly owned by Macau casino giant SJM Holdings, announced over the last week that it was cutting its Hong Kong IPO by more than half, from more than 2 billion shares to just over 934 million. The company, which owns the Macau Fisherman’s Wharf entertainment complex, is lowering its targeted proceeds from the offering to as much as US$358 million from a previously planned $788 million. The company says it now aims to list on 5th July.
Resorts World Manila, a joint venture between a Hong Kong subsidiary of Malaysia’s Genting Group conglomerate and Philippine property giant Alliance Global, filed a prospectus for an IPO last month with a view to gauging investor interest in their expansion plans, which include a US$1.1 billion mixed-use casino and leisure complex, Resorts World Bayshore, under development at Manila’s new Entertainment City casino district.
RWM, which opened in 2009, comprises three hotels, a shopping mall, cinemas and a performing arts theater. The site of the country’s largest casino, it has been far and away the Philippines’ market leader in gaming revenue. A successful listing would have been the biggest offering in the Philippines this year.
Travellers International Hotel Group, as the joint venture is called, says it is still shooting for an IPO later this year, sources told the Journal.
