HONG KONG – Studio City International Holdings, which has outperformed other Macau gaming companies in its first few weeks as a public company, is set to face a key test today when analysts are expected to weigh in on whether the shares are still worth buying.
Initiations are likely to be published by lead underwriters Deutsche Bank, Credit Suisse Group and Morgan Stanley as a quiet period expires for analysts. Banks that manage an initial public offering (IPO) tend to be more bullish on a company’s prospects, but Studio City’s outperformance and concerns about the health of Macau’s casino trends may fuel more cautious commentary.
American depositary receipts of Hong Kong-based Studio City have risen 50 percent above last month’s listing price of US$12.50, even as an index of six Macau gaming companies is down 5.6 percent in the same span. The company’s single largest shareholder is Melco Resorts & Entertainment.
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