Posted on: June 14, 2024, 04:00h.
Last updated on: June 14, 2024, 02:05h.
Genting Malaysia Bhd is still considering a New York equity listing that would be comprised of an entity holding some of the company’s US gaming assets.
The long talked about move is viewed as a potential avenue for delivering value to shareholders and was discussed anew earlier this week at the conglomerate’s annual meeting. Genting could list shares on the Nasdaq or New York Stock Exchange (NYSE) for a corporation comprised of Resorts World Las Vegas and Resorts World New York.
Listing in the United States can unlock shareholder value and enhance the value of the group,” COO and President Tan Kong Han said at the meeting. “We will obviously pay attention to this matter, but we also need to observe the environment in the United States and it will depend on the situation.”
Genting also controls Empire Resorts, which is the holding company for Resorts World Catskills, Monticello Raceway, sports betting operations in New York, and Resorts World Hudson Valley. It’s not clear if Empire Resorts’ assets would join the Resorts World properties in Las Vegas and Queens, NY as part of a US share listing.
Genting Has US Listing History
Genting is familiar with the US listing process and securities regulations in this country. The aforementioned Empire Resorts previously traded on the Nasdaq under the ticker “NYNY” prior to a near bankruptcy.
Parent company Genting Malaysia took Empire Resorts private rather than let the unit collapse outright and has continued to separate that entity with financing.
Prior to Resorts World Las Vegas opening, there was some talk Genting could list in the US. In 2019, analysts noted the company could combine the New York assets, Resorts World Bimini Resort and Marina in the Bahamas, and a 30-acre parcel of land in Miami the company wants to build a casino on into a publicly traded US entity. That Florida land has since been sold.
In 2021, analysts estimated such company be worth $1.5 billion to $1.9 billion by 2025, but that forecast didn’t reflect the addition of Resorts World Las Vegas and the subtraction of the Miami property.
New York Casino Could Be Genting US Listing Wildcard
Although Tan didn’t comment to this effect, a potential variable in Genting’s US listing plans could be the fate of Resorts World New York. The operator is competing to land one of the three downstate casino permits New York regulators are expected to award in late 2025 or early the following year.
The slots-only property in Queens is widely viewed as one of the leading contenders for one of those licenses, but Tan didn’t say if that is part of the equation when deciding whether or not to list a Genting stock in New York.
For investors, it could be. Should Resorts World New York convert to a Las Vegas-style, it could make Genting’s US listing, assuming it materializes, more attractive to a larger swath of market participants.
