previously it applied for dual listing in hongkong stock market. Most ppl speculated that the capital raised was for the purpose of building macau studio city. But the amount to be raised, 500 million US dollar is too small for such a grand project.
A lot of ppl is wondering how it can raise enough cash to build the studio city. Recent rumor enlightens the possibility of major investors James Packer to inject capital through convertible bonds. How likely is that approach? If it is the case, is that James Packer will become the sole largest stake holder after converting the billion bonds into shares ?
eason, you're clueless. They get a loan for construction. They use the equity proceeds to meet cash holding requirements for the loan. Banks want them to have cash at all times in order to pay off the loan.
This seems very plausible. Analysts speculated MPEL needed at least 2 Billion USD for purchase & construction of MSC (not sure if any provisions for possible Phillipine venture). The intial IPO was set to raise only $USD 600MM as mgmt felt between free cash flow & issuing debt will meet the difference.