China casino plans $1bn share offer

A Chinese casino operator has announced plans to raise nearly $1 billion with an initial public offering on the New York-based Nasdaq stock exchange.

Melco PBL Entertainment Ltd says it wants to use the money to develop its gambling operations in the Chinese territory of Macau – the world’s fastest growing gaming market.


The former Portuguese colony is the only part of China where casino gambling is legal.

In recent years Macau has seen a surge in the number of visitors from the Chinese mainland, many of whom come to play the growing number of gaming tables in the territory.


In October visitor arrivals were up 20 per cent on a year earlier, while official figures for the most recent quarter show the territory overtaking the Las Vegas Strip as the world’s largest gaming centre.

The gambling boom, fuelled by China's fast-growing economy, has attracted billions of dollars of investment from casino operators, including several from Las Vegas.

City of Dreams

Melco, which manages its Macau operations as a joint-venture with Australia’s Publishing & Broadcasting, is planning to open its first casino in mid-2007.

The 220-table Crown Macau casino cost $512 million to build.

It has also started work on the 2,000 room, 450-table City of Dreams gambling resort, the first phase of which is due to open in 2008 at a total cost of $2.1 billion.

A third project, currently in the planning stage, for a casino and apartment complex in Macau is expected to cost a further $700 million.

In a preliminary prospectus filed with US authorities. Melco said the IPO would amount to 14 per cent of the company.

It gave no date for offering, but trading is expected to begin in a few weeks.