SJM Makes IPO Move

As reported by the China Standard: "Stanley Ho's Sociedade de Jogos de Macau (SJM) has invited investment banks to submit proposals for an initial public offering of up to HK$7.8 billion in Hong Kong, said sources familiar with the situation.

"SJM, the largest casino operator in Macau, sent out a request for proposals Monday, but any listing is 'still a long way away' and not likely until the second half of next year, a source said.

"The share sale, tentatively set to raise HK$5.85 billion to HK$7.8 billion, requires the blessing of the Macau government. KWah Construction Materials received Macau's approval in January for its HK$18.4 billion acquisition of another firm with a gaming concession, Galaxy Casino.

"SJM, which runs 16 casinos in Macau, reported about HK$34.2 billion in gambling profit in 2004, up 23 percent from a year earlier. Sources said SJM could be valued at about HK$39 billion.

"Hong Kong requires listed companies to have at least 25 percent of their shares in public hands. In SJM's case that would require an IPO of HK$9.75 billion. The smaller HK$7.8 billion target suggests SJM is less likely to list the entire company than to hive off a set of its assets for sale. SJM is 80 percent controlled by Ho's Sociedade de Turismo e Diversoes de Macau (STDM). Shun Tak Holdings, his ferry services to property group, holds another 12.6 percent…"