SJM Holdings, one of the six casino operators in Macau, has seen the institutional portion of its HK$5.1 billion share offering two times oversubscribed but retail investors are not so keen about the deal amid the sluggish stock market. 'Most [institutional] buyers are long-only funds that demand a steady return on investment. Some of them were attracted by the proposed 6 per cent to 7 per cent annual [proposed] yield offered by SJM,' said a source close to the offering. Sources said SJM planned to pay about 80 per cent of its profits as dividends. SJM reported a 43 per cent drop in net profit to HK$1.49 billion last year and a report by BNP Paribas, the deal's arranger, shows expectations for it to deliver flat earnings growth in the three years to 2010. BNP said a good supply of high-quality gaming resorts due for launch up to 2010 would help prevent further erosion of the company's market share in Macau. But retail investors are still shying away from the offering after poor performances of new listings this year. Of the seven companies that listed in Hong Kong last month, none are trading above their offer prices. 'Retail investors are afraid of buying new names after losing money in the first half,' said Ricky Tam Siu-hing, a director at Champlus Asset Management. 'Moreover, the lawsuit between Ho family members will affect investors' appetite for this offering.' Winnie Ho Yuen-ki, the estranged sister of Stanley Ho Hung-sun, has threatened to file a lawsuit to halt SJM's listing. There are more than 30 pending lawsuits filed by her in Macau and Hong Kong against SJM and its parent, Sociedade de Turismo e Diversoes de Macau. SJM is marketing 1.25 billion new shares at HK$3.08 to HK$4.08 each to raise up to HK$5.1 billion, according to its listing prospectus. Both the institutional and the retail offering will remain open tomorrow. The stock will begin trading on July 10. Deutsche Bank is the sole bookrunner of the offering.