Studio City sets terms for IPO

Studio City International Holdings, the controlling entity of Studio City in Macau has announced terms for its long-awaited Initial Public Offering (IPO) on Wednesday.

According to a filing from the entity’s majority shareholder, Melco International Development, the Hong-Kong based company is planning to offer 28.8 million ADSs preliminary offer price range between US$10.50 and $12.50 per ADS.

Based on the price range, Melco said the offering is expected to generate gross proceeds of between $301.9 million to $359.4 million.

Melco said it intends to use the net proceeds of the offering to acquire newly-issued shares of its subsidiary, MSC Cotai Limited. In turn, MSC Cotai expects to apply the net proceeds it receives for the repayment of certain existing indebtedness.

Studio City International Holdings plans to list on the New York Stock Exchange under the symbol MSC.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, and Morgan Stanley & Co. International plc are acting as joint bookrunners of this offering and as the representatives of the underwriters.