Jefferies Comments on MGM China Holdings IPO

MGM Resorts International MGM announced the pricing of its subsidiary, MGM China Holdings, at HK$15.34 for its Hong Kong IPO, “which should generate $1.5 billion in cash for Pansy Ho,” Jefferies reports. “The price was at the top of the expected range and the subsidiary's shares are expected to trade publically on June 3, 2011,” Jefferies writes. “Based on our estimates, the offering price of HK$15.34 represents an EV/EBITDA multiple of 12.7x our FY2012 estimates. We believe the completion of the MGM China Holdings IPO should be a positive catalyst for MGM shares as they progress from what has been a complex story for the past several years.” MGM Resorts International closed Friday at $15.40.