Las Vegas Sands Makes Market Debut
Staff -- Tradeshow Week, 1/10/2005
Las Vegas Sands, owner of the Sands Expo & Convention Center and Venetian Resort Hotel Casino, made one of the strongest market debuts in recent history, raising more than $744 million in its Dec. 15 initial public offering.
Shares of the stock priced at $29 — well above the $21 expected — and jumped by more than 60 percent during the first day of trading. In late December, shares of Las Vegas Sands were trading at about $48.
Las Vegas Sands plans to us the proceeds to fund existing operations, as well as expand in Singapore, Japan, Thailand, the United Kingdom and the United States.
The company turned to the public markets just as the IPO market was recovering and Las Vegas' competitive environment was changing. Harrah's Entertainment has made a $5.2-billion bid for Caesars Entertainment, and a $7.9-billion merger between MGM Mirage and Mandalay Resort Group is set to wrap up at the end of the first quarter.
Approved by Mandalay shareholders Dec. 10, the merger will create an industry powerhouse with 10 Las Vegas hotels and casinos and the million square foot Mandalay Bay Convention Center under its control. Altogether, the combined companies will own 17 casinos and have partial ownership in four others.
Mandalay Bay recently reported third-quarter net income of $67.1 million, or 99 cents per share, up from $40.6 million, or 63 cents per share, in the third quarter of 2003. The improved results were attributed in large part to an increase in business at its Las Vegas Strip properties, particularly the Mandalay Bay Resort & Casino.
Mandalay Bay generated nearly $30 million more revenue than in the year-ago quarter. That included $4.2 million in revenue from convention center space rentals, up from $2.5 million generated in the third quarter of 2003.
