Studio City's IPO: What You Need To Know

Studio City International Holdings Limited operates a cinematically themed casino and resort in Cotai, Macau. The company has filed for an U.S. initial public offering and plans to trade on the New York Stock Exchange under the ticker symbol “MSC.”

The Company

The Studio City Casino is filled with 250 mass market gaming tables, 970 gaming machines and 45 rolling chip tables, according to a company report by Bloomberg. The resort has over 1,000 hotel rooms, several restaurants, a Ferris wheel, a Batman flight simulator, nightclubs and more.

Founded in 2000, Studio City retains over 4,000 employees.

The Details

Studio City will offer over 28.7 million American depository shares, each representing four ordinary shares of the company, according to the press release. The price range of shares is estimated to range between $10.50 and $12.50.

At the midpoint, the company anticipates net proceeds of approximately $314.6 million, or $364.2 million in the event that underwriters purchase additional ADSs in full.

The purpose of the offering is to create a public market of shares for the benefit of shareholders, in addition to obtaining additional capital, according to Studio City.

“In turn, MSC Cotai intends to apply the net proceeds it receives from us for repayment of certain of our existing indebtedness,” the announcement said.

The company does not have a repayment plan in place for existing debt, and the amounts and timing of any purchases will vary depending on several factors.

"Our management will have significant flexibility in applying and discretion to apply the net proceeds of the offering," according to Studio City.

Credit Suisse Securities, Morgan Stanley & Co. International and Deutsche Bank are the main underwriters for the offering.

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Photo by Bjorn Christian Torrissen/Wikimedia.