Study City boosts IPO proceeds through over-allotment option

    Underwriters for Studio City International Holdings’ initial public offering have exercised their over-allotment option, buying an additional 4,312,500 American Depositary Shares at the IPO price of $12.50 each.

    With the exercise of the option, the total number of ADSs  sold in the IPO was 33,062,500.

    Studio City received total proceeds of approximately $406.7 million from the IPO, including the over-allotment option. Prior to the exercise of the option, it raised $359 million.

    It received a further $2.5 million from a concurrent private placement to Melco International Development.

    Studio City runs the Hollywood-themed resort of the same name in Macau. Parent company, Melco Resorts & Entertainment will see its stake in the company fall to 57.3 percent from 60 percent as a result of the IPO.