Macau-based gaming promoter Sociedade de Entretenimento Sing Vong Lda is seeking an initial public offering (IPO) in Hong Kong via its offshore holding company Sing Hou Entertainment Group Ltd.
Sing Vong is a gaming promoter licensed by Macau’s casino regulator, the Gaming Inspection and Coordination Bureau. It runs a VIP room with four baccarat tables at Galaxy Entertainment Group Ltd’s StarWorld casino, according to a document made available last week on the website of the Hong Kong Stock Exchange.
But some parts of the document – including those relating to the timetable for the desired listing and the pricing of the shares in the planned launch – are blanked out in the publicly-available version.
Sing Hou Entertainment did however say in the document that it aimed to use the listing proceeds to open in 2015 a new VIP room. The news of the planned IPO was reported on Tuesday by Macau Business Daily.
Sing Hou Entertainment – a Cayman Islands-registered firm – is controlled by Fan Keng Seng, who is also its customer relations manager, says the document lodged with the Hong Kong Stock Exchange. He is identified in the paperwork as owning a construction company and being involved in building large scale casino hotel projects in Macau. Mr Fan is also a member of the standing committee of the Chinese People’s Political Consultative Conference of Huizhou City, in Guangdong province.
Several Macau gaming industry veterans are involved in Sing Hou Entertainment, according to the document. They include Fang Xingchao, chairman of the board, and his brother, described as Fong Seng Wa. Mr Fong, who serves as the company’s chief executive, has over 20 years of experience in the sector. He is also a member of the standing committee of the Chinese People’s Political Consultative Conference of Huizhou City.
Lo Wing Ming, from 2002 to 2007 chief financial officer of junket investor A-Max Holdings Ltd – currently known as Amax International Holdings Ltd – is Sing Hou Entertainment’s chief financial officer.
The document lodged with the Hong Kong Stock Exchange states that Sing Vong generated total VIP gaming revenue of MOP331 million (US$41.4 million) in 2013, down 1.8 percent in year-on-year terms. That equated to a market share of around 0.17 percent of total VIP gaming revenue generated by Macau gaming promoters last year, the company estimated.
The firm says its results have improved significantly so far this year. The company reported net rolling chip volume – a measure used by casinos to judge the aggregate amount of player bets and overall volume of VIP gaming room business – of HKD10.7 billion (US$1.4 billion) for the nine months ended September 30, compared to HKD6.0 billion in the year-earlier period.
That growth compares to a fall of 4.1 percent during the same period in market-wide gross revenue for VIP baccarat. The latter figure is from data issued by the Macau regulator. Gaming analysts have attributed the market-wide decline to a range of factors, including the ongoing anti-corruption campaign in mainland China and a significant drop in credit volumes by Chinese banks.
Sing Vong is not the only Macau-based gaming promoter eyeing a listing in the Hong Kong Stock Exchange. Iao Kun Group Holding Co Ltd is applying for a listing there too – but via what is known as introduction, meaning no new shares would be issued. Iao Kun is already listed on Nasdaq in New York.
Macau junket investor Jack Lam Yin Lok has opted for a different route. Mr Lam and parties associated with him in September assumed control of 65.85 percent of Sinogreen Energy International Group Ltd, a Hong Kong-listed firm originally trading in chemical and energy conservation-related products. That firm is now undergoing a major repositioning. It will shift its focus to developing a junket business in Macau and will be renamed Jimei International Entertainment Group Ltd.
Mr Lam is chairman of Jimei Group Ltd, one of Macau’s largest consolidators of gaming promoters.
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"I am not going to speculate on what the [casino licence refreshment] tender requirements would be. I have full confidence and faith in the Macau government to treat everyone fairly"
Wilfred Wong Ying Wai
President and chief operating officer of Macau-based casino operator Sands China