GENTING SINGAPORE

Understanding The Trajectory S$1.17-GENS.SI

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to withdraw from the US$2.5 bln IPO of

Sands

investment banks as well as state-owned

corporations (eg the sovereign wealth fund

are also said to be under similar pressure, either as

underwriters or as cornerstone investors.Bank of China is reported to have been forcedMacau, due to political pressure. Other ChineseCIC)

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workers when he suspended work on the Cotai

project last November, was also cited as a reason.

As we had earlier noted, Adelson’s focus on

Sands

for Singapore. (Adelson is the founder of

Sands

part of it.)Sheldon Adelson’s firing of 11,000 constructionMarinaat the expense of Macau augured very wellLA, and Macau Sands and Marina Sands are

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whimsical. Just look at the flip-flop on the visa policy

for the mainlanders:

- May ‘08 : Chinese mainlanders were limited

to visit Macau once a month;

- July ‘08 : tightened to once every 2 months;

- Oct ‘08 : further tightened to once every 3

months;

- Early ‘09 : because of the crisis, this was

relaxed back to once a month.China’s policy towards Macau has been rather

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for Singapore’s IR ambitions, and

Singapore

best reflected in how quickly the 1.18 bln shares or

12.3% sold by the late Lim Goh Tong’s family on

May 27

good part went into the hands of

related parties. (There has however been no

confirmation on this.)It seems like what is negative for Macau may be goodGentingoffers the only direct exposure. This isth were snapped up, with talk that some or aStanley Ho and

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May ’09. KL-listed

shareholder with a 54.4% stake.Genting has 9,637,768,746 shares on issue as at endGenting Bhd remains the largest

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May 20

100 mln shares were traded a day on 8 trading

days, totaling 2690 mln shares or 70%. (A

whopping 1.73 bln shares were traded on May

27

May 26

then dropped to 63 cents on Jun 16

not looked back since, almost doubling to

$1.17 yesterday, in under 3 months.

broking research reports have also contributed to

this.)A total of 3,895 mln shares were traded fromth to Jun 30th, during which more thanth.) Genting’s share price hit 92 cents onth, just before the share transactions,th, and has(Favorable

�� We have no rating on the stock.