Wynn Resorts said today it hopes to raise $175 million through its stock offering of up to 9.6 million shares the company announced late Monday.
The company priced the stock at $19 per share and plans to use the proceeds for general corporate purposes, including paying off debt.
But with speculation flying about MGM Mirage and Harrah’s Entertainment being willing to part with Strip resorts in order to shore up their balance sheets, the stock offering and the company’s liquidity fueled discussion that Wynn Resorts Chairman Steve Wynn might be a potential Strip shopper.
Goldman Sachs gaming analyst Steven Kent, however, doesn’t believe Wynn will use the funds to purchase any on-the-market Strip casinos, such as the Bellagio, which Wynn built but was acquired in 2000 by MGM Mirage.
“Although there may be some opportunities to purchase assets over the next several months, we would be surprised to see Wynn pursue this, given its lack of a track record on acquisitions,” Kent told investors in a research note.