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Ho's Hong Kong SJM IPO struggles, but completes...
Shares in Sociedade de Jogos de Macau (SJM), Stanley Ho's casino company, finally began trading on the Hong Kong Stock Exchange after last-minute legal challenges from his sister.
Winnie Ho's legal moves delayed the offering, and prompted the withdrawal of over half the total applications made by individual investors. As a result, the offer was undersubscribed and Deutsche Bank, which ran the IPO, was left holding 100 million shares.
Winnie Ho, who has launched over 30 legal challenges to her brother and owns around 7 percent of SJM, questioned the legality of the sale at the last minute, claiming that it went against Hong Kong's policy not to promote gambling.
In the face of increased competition in Macau, where his casino operations are estimated to have lost almost half their market share since SJM lost its casino monopoly in 2002 and Las Vegas casino operators moved in, Stanley Ho is raising money to revamp his operations. The IPO sold a quarter of SJM's shares and raised almost half a billion dollars - but this was under half the target for the IPO at the start of this year, owing to a weak stock market, fears about trading conditions in Macau, and queries from the stock market regulator about the shareholding structure of SJM's parent company.
"You all know our path towards the listing has not been smooth," said the 86 year old Stanley Ho, one of Asia's richest men who owns or controls 30 percent of SJM. "But we have successfully overcome a series of obstacles, turning challenges into opportunities."
Meanwhile, the South China Morning Post reported that Wynn Resorts was contemplating a $3billion Hong Kong IPO to raise money for its Macau developments.
