Sands to raise $2.5 billion in Hong Kong offering

Las Vegas Sands Corp, run by casino billionaire Sheldon Adelson, may raise about $2.5 billion in Hong Kong's biggest initial public offering this year to restart construction of stalled projects and repay debt.

The operator follows Wynn Resorts Ltd in selling a stake in its Macao unit to boost capital as revenue at its Las Vegas business declines. The offering by Sands China Ltd comes after a slump last month in shares of Hong Kong-traded gambling companies.

"It will definitely test the market's appetite," Binay Chandgothia, who manages about $2 billion as chief investment officer at Principal Global Investors (Hong Kong), said by phone yesterday. "Globally, we are passing through a period of uncertainty while we've seen some pullback recently on talk about restrictions on Chinese visits to Macau," he remarked.

Hong Kong stocks drop as home sales slump

Hong Kong stocks fell, led by developers and banks, after the city's home sales dropped and Apple Daily said HSBC Holdings Plc's bad debt provision in the US may stay high.

Sino Land Co, this year's second-best performer on the Hang Seng Property Index, dropped 2.4 percent after Centaline Property Agency Ltd said weekend home sales declined. HSBC, Europe's largest bank, slipped 1 percent. Li & Fung Ltd slid 3.7 percent after US consumer spending dropped.

The Hang Seng Index fell 0.6 percent to close at 21,620.19. The gauge has surged 91 percent from a low for the year on March 9 as stimulus measures have revived economies around the world.

The China Enterprises Index of top locally listed mainland stocks fell 0.22 percent to 12,741.88. It opened 2.82 percent down.

China Daily/Agencies

(HK Edition 11/03/2009 page4)