London-listed DJI Holdings Plc, a supplier of technology and services to mainland China’s lottery market, confirmed in a filing that it intends to seek a secondary listing of its shares on Nasdaq in New York – for possible completion before the end of the first quarter next year.
It added that a Nasdaq listing, “and the enhanced market liquidity that it would bring, will assist the group in developing a stronger institutional shareholder base”.
DJI further stated that a formal evaluation process for a secondary listing had been announced and commenced by the firm in December 2014, with investor discussions held in both Hong Kong and the U.S.
DJI said the secondary listing decision was “reinforced by the Chinese State Council’s Public Announcement of October 14 regarding faster approval and administrative processes” for mainland China lottery operators, while allowing provincial lottery centres “more flexibility in increasing payouts for their own games”.
The firm added in its Wednesday filing in London: “It is hoped that since DJI expects to join Nasdaq as a Foreign Private Issuer, it should be possible to complete the secondary listing process during the first quarter of 2016. Advisers have commenced work and the board will keep shareholders fully appraised of progress.”
In early September DJI announced a joint venture with Heilongjiang Sports Bureau, which DJI says either operates, or is responsible for, all sports lottery activities in that Chinese province. At that time DJI mentioned the possibility of the joint venture having a Nasdaq listing.
The Heilongjiang Sports Bureau joint venture will include – for what DJI says is the first time in a Chinese province – a business-to-business online booking system for sports lottery sales.
DJI has acknowledged in previous filings that its China lottery business has been adversely affected by a national suspension of sales of online lottery products – announced initially by the Chinese authorities in March, and then on a multi-agency basis in April. It was described at the time as “temporary” but remains in place.
