Hong Kong’s Studio City International to raise up to $359.38 mln in IPO

Hong Kong-based gaming, retail, and entertainment resort Studio City International Holdings announced the launch of an initial public offering (IPO) of American depositary shares (ADSs), each ADS representing four class A ordinary shares of Studio City International Holdings.

The offering is expected to generate gross proceeds of between $301.88 million and $359.38 million. Studio City International Holdings also granted the IPO underwriters a 30-day option to purchase up to an additional 4.3 million ADSs.

The company expects to use the net proceeds of the offering to acquire newly-issued shares of its subsidiary, MSC Cotai Limited. In turn, MSC Cotai expects to apply the net proceeds it receives for the repayment of certain existing indebtedness.

Studio City International Holdings IPO is for a total 28.75 million ADSs. The price range for the offering is currently estimated to be between $10.50 and $12.50 per ADS.