Las Vegas Sands rises on approval of Hong Kong IPO

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Shares of Las Vegas Sands Corp. rose Friday as the casino operator received approval for its Hong Kong initial public offering and investors latched on to upbeat comments made by CEO Sheldon Adelson. Earlier in the day a person familiar with the situation said Las Vegas Sands won approval from Hong Kong's stock exchange to list shares of its Macau casino business. The move is anticipated to raise $2 billion or more to help the casino operator reduce its debt and restart a casino-resort project on the Chinese enclave. The IPO, which is expected later in the year, would come after Wynn Resorts Ltd.'s Hong Kong IPO launched earlier this month. David Bain of Sterne Agee believes the Hong Kong IPO is a big near-term catalyst. "We believe Las Vegas Sands will be able to complete its Hong Kong IPO for a portion of its Macau assets" and do so at a solid stock price, he wrote in a client note. Bain maintained a "Buy" rating and boosted the casino operator's price target to $26.50 from $24.50 News of Las Vegas Sands' Hong Kong IPO comes shortly after the company based in Las Vegas reported a wider third-quarter loss. The casino operator said late Thursday that its quarterly performance was hurt by softer gambling markets, higher taxes and costs from the development of a new Singapore resort. But Adelson said he was seeing strong signs that bad times might be turning around in Las Vegas because of a return of convention business and group bookings. His outlook sent the casino operator's stock up in aftermarket trading Thursday. JPMorgan's Joseph Greff said in a client note that he was pleased to hear that group business bookings are returning to the company, which should bode well for MGM Mirage, which is reporting its quarterly results next week. The analyst reiterated an "Overweight" rating and $24 price target. Las Vegas Sands' stock gained 91 cents, or 6.2 percent, to $15.67 in morning trading. The shares have traded in a 52-week range of $1.38 to $20.73. Copyright 2009 Associated Press. All rights reserved.