Friday, October 06, 2006

NagaCorp to debut on Hong Kong stock exchange

Friday October 6, 2006

By Loong Tse Min
The Star (Malaysia)


HONG KONG: It’s second time lucky for Malaysian-owned, Cambodia-based casino operator NagaCorp Ltd. Having had its listing bid rejected by the Singapore Exchange almost three years ago, the company is set to make its debut as the first gaming-related counter on The Stock Exchange of Hong Kong Ltd (HKEx).

NagaCorp is offering 500 million shares, of which 450 million are to institutional investors and the balance to the public. Based on an offer price of HK$1.25 per share, net proceeds raised are expected to reach HK$546mil.

Initial public offering of shares in Hong Kong are made within a price range and HK$1.25 is the lowest of the range of between HK$1.25 and HK$1.60 per share.

NagaCorp’s casino operations are located in NagaWorld, an integrated hotel, gaming and entertainment complex covering 14,160 sq m in Phnom Penh.

Its listing in Hong Kong was also not without hiccups. The HKEx last year rejected a listing application by NagaCorp, citing concerns about the company's internal money-laundering controls.

Sponsor and arranger of the listing, Hong Kong-based Anglo Chinese Corporate Finance Ltd yesterday expressed full satisfaction on the issue at a press conference.

NagaCorp president and chief executive officer Tan Sri Dr Chen Lip Keong said the group had set up an internal committee to “mitigate effectively the risk of money laundering”, adding that its members included former senior members of Hong Kong police's serious crimes division.

The public offer of NagaCorp begins today and ends at midday Oct 11.

The listing price and allotment results will be announced on Oct 18 and dealing in the shares of NagaCorp is expected to commence on the HKEx main board on Oct 19.

Of the net proceeds, HK$461mil will be used for the further development of NagaWorld including an eight-storey entertainment wing with 124 gaming tables and 211 gaming machines; and a 14-storey hotel wing with 508 rooms and 52 public gaming tables.

A total of HK$62mil will be allocated for installation of gaming equipment, tables and other ancillary equipment for the public gaming floor with the balance for general working capital.

NagaCorp owns a 70-year casino licence commencing in 1995 and the exclusive rights to operate within 200km radius of Phnom Penh until 2035.

For the financial year ended Dec 31, 2005, the group posted a 41.3% increase in net profit to US$24.9mil on a 9.8% increase in revenue to US$64.3mil.

For the first five months of this year, it recorded net profit of US$17.4mil on revenue of US$38mil.

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