Casino Giant Wynn Eyes Shares Sale

Wynn Macau plans to sell off 25% of its Macau assets in upcoming months. The move is designed to raise a staggering $1.63 billion in the short term. But there's more to this story than meets the eye.

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The short and bittersweet of it is that Wynn is facing declining consumer confidence in its US brand. In the latest NASDAQ reports, Wynn's share price is hovering at its lowest point.

The share price is currently around 68.680, just a fraction higher than its lowest-ever point of 67.900. The 52-week return on WYNN:US Wynn Resorts Ltd is at -22.987%.


The casino giant is eager to prop up its US based operations by selling off some 25% of Macau assets. But the company is hardly in dire straits. The move to generate working capital comes hot on the heels of Wynn's strategic perspective.

Wynn is confident that China will relax restrictions on travel to Macau - the world's leading gambling destination. If that happens, then Wynn is going to reap windfall returns on their Asian asset portfolio.

Indeed the same thing happened for Galaxy Entertainment and Melco International Development Ltd. They realized a doubling of their share price in 2009.

There are several unknown variables in the mix, such as the supply of gaming tables and the government's visa policy.

Interest is high
Wynn's lucrative Asian operation is expected to fix the share price on October 1. Trading will commence around 1128 to debut by October 9. Six cornerstone investors have already pledged to buy up to $250 million of the shares.