Asian casino operator Melco Resorts and Entertainment Limited could reportedly soon be de-listed from the Nasdaq bourse under rules adopted by the United States Securities and Exchange Commission in January.
According to a report from GGRAsia, the Hong Kong-headquartered firm behind a trio of Macau casinos was yesterday reportedly placed on the federal agency’s provisional list of foreign companies that are set to be de-listed. The source explained that the revelation saw the value of individual shares in the operator immediately plummet by more than 5.7% to stand at approximately $6.50.
Federal foundation:
Melco Resorts and Entertainment Limited is responsible for Macau’s impressive City of Dreams Macau, Studio City Macau and Altira Macau venues as well as gambling-friendly facilities in Cyprus and the Philippines. However, the company run by billionaire businessman Lawrence Ho Yau Lung is now purportedly facing the real prospect of being de-listed after the United States Securities and Exchange Commission brought in the new regulations for Chinese companies under the domain of the nation’s Holding Foreign Companies Accountable Act.
Auditing argument:
Global investments research firm Sanford C Bernstein Limited reportedly used a filing in March to advise investors that there was ‘no near-term risk of any de-listing’ for Melco Resorts and Entertainment Limited. However, the institution purportedly furthermore noted that the casino operator’s inspection problems with the United States Securities and Exchange Commission ‘will need to be resolved’ before the start of 2024.
The filing from Sanford C Bernstein Limited reportedly read…
“Chinese and United States authorities have been in discussion for some time on how to potentially resolve the United States Public Company Accounting Oversight Board audit issue. If no agreement occurs, the solution would be for Melco Resorts and Entertainment Limited to do a listing on the Hong Kong Stock Exchange or to potentially merge with its Hong Kong-listed parent, Melco International Development Limited.”