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LAS VEGAS-Wynn Resorts Ltd. confirmed Tuesday that it has filed an application with the Hong Kong Stock Exchange in connection with a possible listing and public stock offering in Hong Kong. The news comes after multiple reports on Monday that Las Vegas Sands Corp. is doing the same. Both are considering offering shares in its Macau assets.

“No decisions have yet been made regarding the timing or terms of any such offering or whether the subsidiary will ultimately proceed with such a transaction,” Wynn Resorts said in a regulatory filing.

Susquehanna Financial Group analyst Robert LaFleur said in a note to clients this morning that that Las Vegas Sands Corp. needs additional capital to complete its halted Cotai Strip development in Macau. Wynn, he says, is doing what it has done well over the years, issuing equity and debt when market conditions are beneficial.

Depending on the news source, proceeds from the Wynn IPO are expected to range between $500 million to $2 billion, LaFleur wrote. UBS, Morgan Stanley, and JPMorgan have been appointed to handle the deal.

In addition to needing construction capital, LaFleur says Las Vegas Sands is running the risk of violating the covenants on both its domestic and Macau credit lines.

“While LVS could clearly use the cash, Wynn really doesn’t have such pressing need,” LaFleur wrote. “That said, Wynn has been very opportunistic over the years in taking advantage of favorable market conditions to issue equity and/or debt, and clearly the Hong Kong stock market is hot (up 70%+ since the March lows) and the IPO window is apparently open. Wynn is in the best shape among the large Las Vegas gaming operators from a balance sheet perspective, and doesn’t need funding to finish any current projects.”

LaFleur says market reaction was highly positive on Monday for Las Vegas Sands, with the stock trading up 15% and Wynn up nicely as well. “Yesterday’s price action seems to have captured most of the Hong Kong IPO enthusiasm for both names, as the reaction in the stocks today is fairly sedate so far,” he wrote.

Shares of Wynn stood at $39.52 in late afternoon trading Monday, down $0.31 on the day. Las Vegas Sands stock was trading at $9.66, down $0.20 on the day.

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