Caesars Palace owner's IPO heads for upsize

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Americas
Robert Sherwood

Casino REIT Vici Properties is poised to go public with an IPO that is likely to be upsized and priced within range Wednesday evening.

The issuer is now expected to raise US$1.2bn, 20% higher than the original target size, as it readies pricing at US$20 a share, sources with knowledge of the transaction told IFR.

That is the midpoint of the US$19-$21 marketing range and above the US$19.50 that rival MGM Growth Properties had offered in an unsolicited just before the IPO’s launch early last week.

The spurned bid may have provided a valuation floor for Vici’s IPO, not mention buoy the company’s OTC-listed shares which have traded above US$21 since the IPO launched.

“Vici wants to go public and start doing deals,” an ECM banker said.

Vici, formed out of the Caesars Entertainment bankruptcy in October, owns a portfolio of casino properties anchored by Caesars Palace, Las Vegas.

Morgan Stanley, Goldman Sachs, Bank of America Merrill Lynch, Barclays, Citigroup and Deutsche Bank are leading the IPO.

Vici is expected to begin trading Thursday morning on the New York Stock Exchange under the symbol “VICI”.

Caesars/Reuters