Plan subject to investor interest, market conditions
Cambodian casino operator NagaCorp Ltd. plans to offer notes to institutional investors in Asia, Europe and the United States to raise money for upgrades at NagaWorld casino resort in Phnom Penh, the capital of Cambodia.
In a filing to the Hong Kong Stock Exchange, the operator said that net proceeds from the issue will be used “to enhance the quality and appeal” of NagaWorld, and to “promote gaming business growth, particularly in our VIP gaming segment, and refurbish the hotel rooms in Naga 1.”
Naga 1 opened in December 2006. It is now connected to the Naga 2 development, which opened last November, through an underground shopping mall known as NagaCity Walk. In 2017, according to GGRAsia, the company’s net profit was up 38.6 percent from the previous year. Revenue for the period increased by 79.8 percent.
The company attributed the positive results “to robust business volume growth across all segments, especially from the VIP segment.”
The firm launched a roadshow May 2 to pitch the issue to investors. The plan came with a caveat, according to NagaCorp, which said the completion of the proposed notes issue “is subject to market conditions and investors’ interest and therefore may or may not proceed.”
NagaCorp is now building a casino resort in the Primorye Integrated Entertainment Zone near the Pacific port of Vladivostok in Russia. That resort is scheduled to open in 2019.
