Junkets face listing challenges on HK Stock Exchange

Thursday 29th of January 2015

Obstacles are facing Macau-based VIP gaming promoters as they seek to list on the Hong Kong Stock Exchange with falling revenues already forcing many operators to quit the once lucrative market.

The efforts of Macau-based VIP gaming promoters Iao Kun Group Holdings Co. Ltd. and Sing Hou Entertainment Group Ltd. to list on the Exchange come against the backdrop of Beijing’s anti-graft policy as well as scrutiny of the business model of the junket operations.

Hong Kong media reported Iao Kun, already listed on Nasdaq in New York, re-submitted its application proof aimed at a dual listing on the Hong Kong Stock Exchange in early January after a previous attempt lapsed last year.

VIP gaming promoter, Sing Hou Entertainment, although smaller in operations, also submitted application proof to seek a Hong Kong listing in late November last year.

Sources told local media concerns were also held by the Listing Committee of the Hong Kong Stock Exchange over the monitoring of money laundering has also contributed to Iao Kun’s failed bid for listing last year.

Sources told local media that concerns held by the Listing Committee of the Hong Kong Stock Exchange over the monitoring of money laundering also contributed to Iao Kun’s failed bid for listing last year.

Analysts say they remain confident Iao Kun will eventually be listed in Hong Kong, given their corporate information is “relatively more transparent and they’re already a Nasdaq-listed firm.”

Despite a downturn in high rollers’ earnings into Macau, Iao Kun and Sing Hou Entertainment are among other local junket promoters seeking access to Hong Kong’s stock market.

Macau’s veteran junket investor Jack Lam Yin Lok and his associated parties assumed control of 65.85 per cent of Hong Kong-listed Sinogreen Energy International Group Ltd in Sept 2014 in a move that led to a major board reshuffle and shift of operational focus to the junket business.