SJMHF - Studio City IPO: Undervalued But Extremely Risky
With ADSs being sold at a low valuation as compared to peers, investors should be very careful with Studio City (MSC). There are several risks that shareholders should notice before buying ADSs. The company comes with a large amount of debt, and the financial risk is very elevated. In addition, the float is quite low, so the volatility risk could be quite significant. Finally, the company is expected to be controlled by one of the shareholders. The Board of Directors could be non-independent.
Source: Prospectus
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