Ho begins process to list casino empire
By Tom Mitchell and Sundeep Tucker in Hong Kong
Published: November 28 2007 19:43 Last updated: November 28 2007 19:43

Stanley Ho, the Macao tycoon, is launching his gaming company’s long-delayed initial public offering as he seeks to fend off overseas challengers in the world’s largest gambling market.

Mr Ho’s gaming company, Sociedade de Jogos de Macau , will apply to the Hong Kong stock exchange for approval to raise at least $1bn, according to people familiar with the matter. The IPO, expected in January, is being arranged by Deutsche Bank, BNP Paribas and CLSA.

However, people involved in the deal warned that the formal IPO process was just beginning.
Mr Ho has dominated Macao’s gaming market, which last year eclipsed the Las Vegas strip to become the world’s largest, for more than 40 years. Gross betting revenues in the former Portuguese enclave reached $7.2bn in 2006.

But Mr Ho’s position in the territory has been under threat since 2002, when the government decided to break up his monopoly. That attracted a wave of investment from some of the world’s largest gaming operators, led by Sheldon Adelson’s Las Vegas Sands and Steve Wynn’s Wynn Resorts. Mr Adelson now operates the world’s two largest casinos – the Venetian Macao and the Sands Macao – in Macao.

Other entrants include Galaxy Entertainment, controlled by Hong Kong property tycoon Lui Che-woo. Australia’s Publishing and Broadcasting and MGM-Mirage of the US have also formed joint ventures with two of Mr Ho’s 17 children – Lawrence and Pansy. The first Macao casino owned by MGM-Mirage and Pansy is set to open on December 18.

Bringing SJM to market has been complicated by a complex shareholding structure at its parent company, Sociedade de Turismo e Diversões de Macau. Mr Ho has been locked for years in a bitter STDM share dispute with his estranged sister, Winnie.

It is not clear how many of the 18 casinos SJM operates will be included in the listing vehicle.