Analysts Called It For Sands China Debut
Sands China, a subsidiary of Las Vegas Sands Corp (LVS: 19.50 0.00%) was the fourth worst debut this year on the Hong Kong Stock Exchange as predicted by analysts. The stocks high IPO price and weak performance of rival companies were to blame.
Last week’s sell –off over the Dubai’s debt crisis has left investors skeptical and fund managers think that investors are being more critical of listings, perhaps seeing Sand’s $2.5 billion IPO as a risky bet.
“Market sentiment is weak concerning the Dubai debt situation, which will affect investor interest in upcoming IPO’s, as they prefer to hold cash now,” said Y.K Chan, strategist at Phillip Capital Management Ltd.
Shares of Sands China stock dropped 10 percent from its IPO price of $10.38HK, opening the market at $9.35HK and closing at $9.34HK.
CEO Sheldon Adelson commented on the market results by saying, “’We’re not in this for a day’s trading, we’re in it for the long term.”
Las Vegas Sands own 70% of the Macau assets which owns two casino resorts and a hotel in Macau. The market share of 22% is the second largest among casino operators in Macau.
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