Shares of Las Vegas Sands’ Macau unit tumbled on their debut in Hong Kong yesterday, but chairman Sheldon Adelson dismissed the drop as a short-term slump.
Adelson, 76, said Sands China remains committed to developing Macau’s Cotai Strip resort into a full-service gaming venue, despite concerns that the world economy has not recovered from last year’s credit crisis.
“There is no reason to think a little bump in the road is going to last,” Adelson told reporters in Hong Kong. “It’s not going to last, it’s going to straighten out. We’re in it for decades.”
Sands shares fell 13.2 percent to HK$9.01 (US$1.16) on the Hang Seng Index at midday after touching a low of HK$8.78. The shares opened yesterday at HK$10.38.
“The drop is mainly due to the valuation of the company — it’s too high,” said Ernie Hon (韓致立), a strategist at ICBC International (工銀國際) in Hong Kong.
Sands’ share price will likely be “under pressure for some time” because of its heavy debt, Hon said.
The Sands’ underwhelming first day follows several disappointing listings in Hong Kong recently, including those of China’s private lender Minsheng Banking (中國民生銀行) and gaming group Wynn Macau.
Chinese, Hong Kong and overseas companies have rushed to list before year’s end amid signs of an economic recovery.
Rival Wynn Macau’s shares were trading at HK$9.73 yesterday morning, below their initial-public-offering (IPO) price of HK$10.08.
Sands announced its listing plan after Wynn launched an IPO on Oct. 9.
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