European gaming and leisure entity Palasino Holdings Ltd, a subsidiary of Hong Kong-listed property developer Far East Consortium International Ltd, announced on Monday details of its initial public offering (IPO) in Hong Kong.
The company is proposing to offer nearly 142.86 million shares globally, comprising 85.71 million new shares and 57.14 million existing shares. The number of Hong Kong’s public offering accounts for 10 percent of the exercise, according to the prospectus published on Monday.
Palasino Holdings said it expects net proceeds from the global offering to be approximately HKD323.4 million (US$41.4 million), “after deduction of underwriting commissions and other expenses, based on the offer price of HKD2.60 per Palasino offer share”.
Palasino Holdings runs three land-based casinos in the Czech Republic, one of them within an integrated resort. The venues’ players are mostly from neighbouring Austria and Germany, according to corporate information. The company also operates three hotels in Germany, and one hotel in Austria.
Palasino Holdings additionally has a licence issued by the Malta Gaming Authority that allows the company to run online gaming business in that jurisdiction, the document stated.
The IPO started on Monday and will close at 12pm on Thursday, March 21.
Palasino Holdings said it expects to start trading in the Hong Kong bourse on March 26, “assuming that the global offering becomes unconditional at or before 8am in Hong Kong” that same day.
In its prospectus, the company said that about HKD194.1 million of the net proceeds from the IPO will be used to: “maintain and further consolidate Palasino’s market presence in the gaming industry in the Czech Republic through asset rejuvenation”; “expand the firm’s gaming business in the Czech Republic, Central Europe or other markets through acquisition of business or asset and/or bidding for new gaming licences”; and “for additional working capital”.
Approximately HKD129.3 million of the net proceeds will be used “for general working purposes,” it added.
According to the prospectus, based on the number of shares to be offered and the offer price, the market capitalisation of Palasino Holdings will be approximately HKD2.08 billion.
Far East Consortium, through a wholly-owned subsidiary, will hold approximately 73.21 percent of the total issued share capital of Palasino Holdings upon completion of the global offering, assuming that the over-allotment option is not exercised.
The parent company had said that the spin-off and separate listing of Palasino Holdings on the Hong Kong bourse would provide a “separate fund-raising platform” for Palasino Holdings, better reflect its value, and enhance its “operational and financial transparency”.
