MGM China Holdings Ltd. (2282.HK), a casino joint venture between Las Vegas based-MGM Resorts International (MGM) and Pansy Ho, a daughter of Macau gambling tycoon Stanley Ho, is seeking to raise up to US$1.5 billion in an initial public offering ahead of listing on the Hong Kong stock exchange on June 3, according to a term sheet seen by Dow Jones Newswires on Tuesday.

MGM China joins other foreign firms in raising funds in Hong Kong, which was the world's top venue for IPOs in 2009 and 2010. Australian mining firm Resourcehouse Ltd. (0394.HK) also began bookbuilding for institutional investors Tuesday for its up to US$3.6 billion IPO, and Swiss commodities trader Glencore International PLC recently launched its up to US$11 billion Hong Kong-London listing.

Other foreign companies that plan to list in Hong Kong in the coming months include U.K.-listed Kazakh copper miner Kazakhmys PLC (KAZ.LN), which started pre-marketing for its around US$200 million IPO; U.S. luggage maker Samsonite, which plans to list in June; Italian fashion company Prada SpA, and Japanese clothing retailer Baroque Japan Ltd.

MGM China, which started bookbuilding for institutional investors Tuesday, plans to offer 760 million shares at an indicative price range of HK$12.36 to HK$15.34 per share, the document said.

The company's listing plan also comes after the March settlement of a months-long family feud for control of Stanley Ho's multibillion-dollar gambling empire. A family feud burst into the open earlier this year when the gambling tycoon accused the children of his second wife, including Pansy Ho, of colluding with his third wife, Ina Chan, to steal a company that held the bulk of his assets. They denied his accusations. The dispute was eventually resolved, and Stanley Ho dropped his lawsuit against his family members.

Wynn Resorts Ltd. (WYNN) and Las Vegas Sands Corp. (LVS) both listed their Macau assets in Hong Kong in 2009, forming Wynn Macau Ltd. (1128.HK) and Sands China Ltd. (1928.HK). The three other casino operators in Macau, the only city in China where gambling is legal, are Stanley Ho's SJM Holdings Ltd. (0880.HK), Melco Crown Entertainment Ltd. (MPEL), and Galaxy Entertainment Ltd. (0027.HK), which is controlled by the family of Hong Kong tycoon Lui Che Woo.

Shares in Wynn Macau and Sands China Ltd. have risen by more than 20% since the beginning of this year because of strong gambling revenue growth in Macau, outperforming the benchmark Hang Seng Index's 0.4% decline.

The Chinese territory raked in US$2.56 billion in gambling revenue last month, representing a 45% rise from a year earlier, which puts it on track to generate five times the gambling revenue of the Las Vegas Strip this year.

MGM China, whose Macau assets include a casino and a luxury hotel resort, swung to the black in 2010 with a net profit of HK$1.57 billion (US$201.88 million) compared to a net loss of HK$167.1 million in 2009, according to its listing document.

Under a deal announced last month, MGM Resorts International will have a 51% stake in MGM China after the joint venture's IPO. Joint-venture partner Pansy Ho will have a 29% interest in the public company, and the remaining stake will be sold to the public and the proceeds will go to entities controlled by Ms. Ho. The two partners currently each hold a 50% stake in MGM China

Wall Street analysts have lauded MGM Resorts' plans to take a controlling stake in the Macau operator, saying it will give the debt-laden U.S. casino operator more exposure to the profitable Macau market and management control over the joint venture.

MGM China plans to start its Hong Kong retail offering on May 23, the term sheet said, adding the company will price the deal on or around May 26.

J.P. Morgan Chase & Co., Bank of America-Merrill Lynch, Morgan Stanley are the joint sponsors on the deal, the term sheet said.

-By Prudence Ho and Kate O'Keeffe, Dow Jones Newswires; 852-2802-7002; prudence.ho@dowjones.com

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