\nInvestment research firm Bernstein said in a note, “If it were to happen, (the IPO) does not make much sense to us at this stage.”<\/strong><\/p>\n<\/blockquote>\nBernstein speculates that Silver Point Capital and Oaktree Capital Management are ready to sell their 40 percent, but likely at a premium price. That’s where the IPO might come in.<\/p>\n
Purpose and Process<\/b><\/h2>\n
At its core, a company filing an IPO is done to raise capital.<\/p>\n
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Leading up to an IPO, underwriters assemble a team consisting of lawyers, accountants, and SEC experts that evaluate the business’ financial performance and produce a recommended number of shares at a certain valuation. The SEC then audits the review before allowing the IPO to move forward.<\/p>\n<\/div>\n
Part of the underwriters’ role in bringing a company to an IPO is hyping it up. Those working behind the scenes round up investors, who are often sold shares at reduced rates compared to what the general public will be offered on day one, in order to establish an overall valuation.<\/p>\n
But that valuation needs to be attractive to investors, which is why Melco might be moving forward with a speculative IPO. If it can tell Silver Point Capital and Oaktree Capital Management that this is the true price of Studio City, presumably less than what the private companies are seeking, Melco might grab the upper hand.<\/p>\n","protected":false},"excerpt":{"rendered":"
Melco Resorts, owners of Studio City Macau, has filed paperwork with the US Securities and Exchange Commission (SEC) to explore selling shares in the property through an initial public offering (IPO), but financial experts aren’t sold that any stock issuance will come to fruition. NASDAQ-listed Melco Resorts & Entertainment, which owns a 60 percent stake […]<\/p>\n","protected":false},"author":42,"featured_media":56668,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,18,1],"tags":[],"acf":[],"yoast_head":"\n
Studio City Macau Exploring IPO, Financial Experts Call Melco's Bluff<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n