Cambodian casino operator plans to list in Hong Kong
NagaCorp will make a second attempt after first application was rejected last year by the stock exchange
NagaCorp, a Cambodian casino operator owned by Malaysian tycoon Chen Lip Keong, plans to float its shares in Hong Kong this month, before the proposed share sale of Stanley Ho Hung-sun's giant casino operation Sociedade de Jogos de Macau (SJM) in July.
Market sources said the listing hearing of NagaCorp was scheduled this month and the company aimed to raise $400 million to $600 million. Anglo-Chinese is the listing sponsor.
This will be NagaCorp's second attempt to seek a Hong Kong listing after its first application was rejected last year by the stock exchange due to a lack of internal controls to address money-laundering risks.
In 2003, NagaCorp's listing plan in Singapore was also blocked by the Monetary Authority of Singapore for the same reasons.
NagaCorp, however, won an appeal with the Hong Kong stock exchange earlier this year and re-submitted its application after Cambodia joined the Asia-Pacific Group, an alliance of 28 national governments working to stem cross-border money laundering.
Compared with Macau's US$5.4 billion gaming market, Cambodia's is relatively undeveloped with about US$1 billion of gaming revenue generated from 12 casinos last year.
Cambodia has adopted an open attitude to lure foreign investors into its gaming industry, with foreign casino operators being exempted from the country's foreign exchange controls. About 90 per cent of the gamblers in Cambodia come from Thailand and other Asian economies such as China, Hong Kong, Malaysia, Singapore and Taiwan.
NagaCorp, which owns the only legal casino in Cambodia's capital, Phnom Penh, earned US$29.9 million on revenue of US$61.7 million in 2002 and US$31 million in profit on US$67 million in 2001.
Fund managers said it would be better timing for NagaCorp to float its shares before the giant offering of SJM which was expected to draw heavy investor attention.
SJM's $15 billion offering has been postponed to next month because Mr Ho's estranged sister, Winnie Ho Yuen-ki, has challenged before a Macau court the legitimacy of a Sociedade de Turismo e Diversoes de Macau shareholders' meeting in March which approved the spin-off of SJM.
'Given the recent high-flying share prices of Hong Kong-listed Macau gambling stocks, NagaCorp's float should catch a certain amount of limelight,' said a fund manager.
Melco International Development's shares rose to a 52-week high of $21.05 on Friday, fuelled by news that the company and its partner, Australia's Publishing and Broadcasting, hoped to raise at least US$1 billion by listing their Macau joint venture later this year on Nasdaq.
Galaxy Entertainment Group also hit a 52-week high of $8.30 on Thursday amid market speculation that US gaming group Harrah's Entertainment plans to acquire a 10 per cent stake in Galaxy.
