GGRAsia – Chinese lottery supplier to float on London Stock Exchange

Chinese lottery supplier to float on London Stock Exchange

Jun 30, 2014 Newsdesk Latest News, Rest of Asia, Top of the deck, World

DJI Holdings Plc, a licensed distributor and promoter of lottery products to the Chinese mainland market, has announced its intention to list on the London Stock Exchange. The company is seeking to raise GBP30 million (US$51 million) via a placing of new ordinary shares, the company said in a 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.

Lottery sales – for regulated online products and shop-sold ones – grew by 19 percent year-on-year to RMB309 billion (US$49.8 billion) in 2013.

“The combination of our long-standing relationships with the Chinese regulators, our portfolio of lottery contracts and our reliable technology platform, leave us well-positioned to capture this market opportunity,” DJI Holdings’ chief executive Darren Mercer said in the statement.

The company said the launch of a new digital platform in the fourth quarter of 2013 has boosted sales. Gross sales in the first quarter of 2014 were nearly equivalent to full year 2013 sales, it added.

The proceeds of the listing exercise will be used to fund working capital as DJI Holdings plans for further growth, funds remaining payments on recently acquired businesses and seeks further acquisition opportunities.