GGRAsia – Chinese lottery supplier raises half its initial target

Chinese lottery supplier raises half its initial target

Jul 22, 2014 Newsdesk Latest News, Rest of Asia, Top of the deck

DJI Holdings Plc, a licensed distributor and promoter of lottery products to the Chinese mainland market, said it has raised £15 million (US$25.6 million) via a placing of new ordinary shares and the issuance of convertible loan notes.

The shares will begin trading on London’s Alternative Investment Market (AIM) on July 24, the company said in a statement on Monday.

The company said it has raised £9 million through a placing of new ordinary shares and £6 million through an issuance of convertible loan notes. In June, DJI had said in a statement it was seeking to raise £30 million.

The lottery supplier is to be admitted to AIM with a market capitalisation of about £130.5 million, the company said in Monday’s statement.

DJI’s Chinese subsidiaries are licensed to distribute and promote China Sports Lottery and China Welfare Lottery products online, via mobile communications platforms and through retail outlets across mainland China. The company said it wants to capitalise on the growing online and mobile lottery market in China.

“The placing will provide us with funds to support our planned growth and complete some recent acquisitions as well as the resources to invest in a newly signed key partnership with a government-owned partner,” Darren Mercer, DJI chief executive, said in the statement.

“In June we achieved gross sales of in excess of £80m, which reflects the positive impact of the 2014 Football World Cup. After adjusting for this exceptional event, we continue to trade in line with our expectations,” he added.