Proximity to Indian border a plus
The Silver Heritage Group, which operates and manages casinos in Nepal and Vietnam and manages electronic gaming operations in casinos in Laos and Cambodia, has announced it will launch an initial public offering to raise money for the development of its Tiger Palace Resort in Nepal, near the border of India.
According to the company, Australian investors can get a piece of the fast-growing regional Asian gaming market through the IPO, which seeks to raise AUD$25 million (US$18.75 million) for the company. Silver Heritage hopes to be listed on the Australian Stock Exchange this month.
Under the prospectus, SHG is offering 62.5 million ordinary shares in the company at AUD$0.40 per share. With just six licensed live-table casinos in India and only three licensed casinos in Nepal, Silver Heritage says its Tiger Palace Resort will be well-positioned for success. It will be located within a day’s drive of more than 430 million Indians who live near the Nepal border.
Nepal’s Ministry for Labor and Employment welcomed the investment from Silver Heritage. “Nepal is open for foreign investment in tourism,” said Deepak Bohara. “There is a huge opportunity here to access large untapped Indian demand for leisure and entertainment.”
He cited “our geographical proximity to India and its growing middle class” as reasons that make the IPO “an attractive investment opportunity,” and also said the new resort “will create new jobs and generate significant revenue for our country.”
Silver Heritage Group’s CEO Mike Bolsover said, “We’ve been in Asia for over 12 years and in Nepal since 2012. We are a group that develops projects over time and only where we see significant competitive advantage. We focus on mid-size opportunities and improving operating performance to best practice standards. This strategy has allowed us to build significant expertise and local knowledge while growing profitability and generating attractive returns on capital.”
