Studio City, the Hollywood-themed casino resort in Macau, is looking to raise capital with an Initial Public Offering in the U.S..
Studio City International Holdings has announced that it has filed a draft registration statement for a public offering of American Depositary Shares to the US Securities and Exchange Commission.
Studio City’s financial performance has not been disclosed. Equally, the volume of shares to be sold and the amount of new capital to be raised is being kept confidential.
The resort opened in October 2015. Its launch was attended by a crowd of Hollywood big names including Martin Scorsese, Leonardo DiCaprio, Robert De Niro, James Packer and Brett Ratner. Mariah Carey provided the musical entertainment.
The developer behind Studio City is NASDAQ-listed Melco Resorts & Entertainment. Media billionaire James Packer was initially a major stakeholder but he sold his shares back in May. Another major stakeholder is Lawrence Ho, son of gambling mogul Stanley Ho.
Macau swiftly exceeded Las Vegas in terms of gambling turnover. However it has recently experienced setbacks as China started waging a campaign against corruption, money laundering and local government profligacy. The former Portuguese colony is now a special administrative region within China.
It has, nonetheless, seen an upturn in recent months. Operations like Studio City which contain a diversity of alternative entertainment options, are in a good position.
Studio City is based on Macau’s Cotai Strip. It stretches over 4,000 square metres of indoor event space and boasts a 5,000 seater arena. Popular attractions include a Batman Dark Flight 4D ride, a Warner Bros. Fun Zone, and The Golden Reel, a figure-eight Ferris wheel.