Melco Resorts to hike capital stock to P11.9B
THE OPERATOR of City of Dreams Manila secured shareholders’ approval to boost its authorized capital stock ahead of a proposed equity offering to repay debt and bankroll expansion.
Melco Resorts and Entertainment ( Philippines) Corp. said in a disclosure its shareholders cleared changes in its Articles of Incorporation to reflect the capital stock hike to P11.9 billion from P5.9 billion during the company’s annual stockholders meeting on Monday.
The shares will have a par value of P1 apiece.
Melco Resorts is increasing its capitalization “to tap into any potential fund-raising opportunities, in the form of equity offering” that will be used to “repay outstanding indebtedness, fund growth and expansion, for general corporate purposes and/or for such other purposes to be determined by the board of directors.”
Likewise, Melco Resorts gave the go signal for the company to launch an equity offering and list the subscribed shares in the Philippine Stock Exchange. The waiver of the requirement to conduct a rights or public offering was also approved.
Shares of Melco Resorts, which joined the bourse by taking over Manchester International Holdings Unlimited Corp., are up 136% for the year. The company raised $377 million from a follow-on offering or re-initial public offering in 2013.
City of Dreams Manila is the second casino to rise in Entertainment City, the Philippines’ answer to Macau and Las Vegas.
SM-backed Belle Corp. took in the Macau casino operator, owned by Lawrence Ho, to operate its casino in 2013. Lawrence is the son of Macau gaming mogul Stanley Ho. The other casinos in Entertainment City are Bloomberry Resorts Corp.’s Solaire Resorts & Casino, Tiger Resort, Leisure and Entertainment, Inc.’s Okada Manila. Travellers International Hotel Group, Inc. is also developing Westside City Resorts World in the gaming hub.
Melco Resorts rode on the 80% surge in casino revenues to book a net income of P148.57 million in the first quarter, a reversal of the P1.14-billion net loss in the prior year.
Shares in Melco Resorts fell 44 centavos or 4.69% to close at P8.94 apiece on Tuesday.