Paradise Co Ltd, an operator in South Korea of foreigner-only casinos, has confirmed to GGRAsia that a resolution made on Wednesday by its board of directors to delist from the country’s KOSDAQ stock index, is because the group wishes to move its listing instead to the KOSPI.
The latter is described by the Korea Exchange as the “leading index” of the South Korean bourse. According to business service provider PwC, KOSDAQ instead supports “venture and small and medium-sized companies’ smooth financing”.
A Paradise Co spokesperson told GGRAsia: “We are on a stock market relocation listing to establish a peer group sector with existing securities listed companies such as Grand Korea Leisure [Co Ltd], Kangwon Land [Inc], and Lotte Tour Development Co Ltd, and to induce a revaluation of the company.”
The person added: “This is to maximise shareholder value by expanding the investor base, including institutional and foreign investors.”
Paradise Co’s stock was up 5.04 percent in Thursday trading on KOSDAQ, at KRW13,550 (US$10.19).
The plan must still be ratified at its regular general shareholders’ meeting scheduled for March 22, and will be subject to “approval from related organisations,” Paradise Co stated in a Wednesday filing to the Korea Exchange.
The other listed companies mentioned are competitors to Paradise Co in the South Korean casino sector. Kangwon Land Inc is the only casino firm in that nation permitted to cater to local players, but has recently said it will spend effort marketing to foreign players as well.
Paradise Co directly operates three venues: Walkerhill in Seoul; Paradise Jeju on Jeju island; and a property in the port city of Busan.
It also has a venture with Japan’s Sega Sammy Holdings Inc, for the Paradise City casino resort at Incheon, near South Korea’s main airport.
Paradise Co reported last month full-year 2023 earnings before interest, taxation, depreciation and amortisation (EBITDA) of KRW228.77 billion, up 23.0 percent from the prior year, and net profit of KRW66.36 billion, a 164.3-percent increase year-on-year.
