Melco Resorts & Entertainment has announced the completion of the pricing of shares in Macau integrated resort Studio City at a final offer price of US$12.50 per share, with trading on the New York Stock Exchange commencing on Thursday 18 October 2018 New York time.
In a filing, Melco said that the global offering comprised an initial public offering of 28,750,000 American Depositary Shares (ADS) representing 115 million Class A Ordinary Shares, with each ADS comprising four Class A Ordinary Shares. The global offering represents 38.7% of the enlarged issued share capital of Studio City.
Based on the final offer price, the aggregate amount raised by the global offering will be around US$359.4 million.
Melco Resorts subsidiary MCE Cotai, which owns 60% of Studio City, and affiliates of New Cotai – which holds the remaining 40% – have agreed to purchase 15,330,000 and 10,220,000 ADS respectively from the underwriters, Melco said, with the combined purchase representing 88.9% of the total ADS offered.
Explaining the reasons behind the offering, Melco said that it aimed to create a public market for its Class A Ordinary Shares in the form of ADS for the benefit of shareholders and to obtain additional capital. The additional capital will be used by Studio City to acquire newly issued shares in MSC Cotai Limited, with MSC Cotai Limited to use the proceeds to repay debt.
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