Tuesday, October 10, 2006

NagaCorp IPO In HK
You Have Been Warned, My HK Friends

The institutional order book of Cambodian casino operator NagaCorp's initial public offering is 10 times full, although the retail portion generated a lukewarm response. NagaCorp's initial public offering, which could raise as much as HK$800 million, has attracted orders for about 10 times the number of shares allocated to institutional investors. However, NagaCorp, owned by Malaysian tycoon Chen Lip Keong, generated about HK$306 million worth of margin orders on the second day of the retail share sale. Compared with Beijing department store operator Jingkelong [8245], which was listed on September 25 and which attracted close to HK$1 billion on the second day of its initial public offering, NagaCorp was not very hot.

Its not like CLK (of FACB fame) did not try to list the damn thing in Malaysia or Singapore.... even they rejected the bloody thing. It would have made a lot more sense to list in Thailand as the proximity and intimate knowledge of Cambodia by the Thais should be a positive, but ... no. HK was chosen, your guess is as good as mine, last resort ... hopefully HKers will gobble them up. Watch this space, the thing will crash like a rock immediately on listing and just check on it a month or 6 months later ... I am betting that it will halve its IPO price.
I shall refrain from putting up more reasons why NagaCorp will fail as it will get personal / political . Let's just say ... Its like "The Sopranos" Meet "The Office" In Cambodia!

My fellow HK firends who have been unfortunate enough to be successful in getting NagaCorp, may the force be with you.

2 comments:

doraiddd said...

aiyoh.. dali, you sour grapes issit cos you missed out on the f.o.c fund manager/ANAL-yst junkets to phnom penh prior to the sing listing that was rejected by MAS coupla years ago? - just kidding, ok?

but actually valuations are really not too demanding. Where got casinos only make usd2mil nett a month? a slot machine club makes just as much!

I was told the numbers are low 'cos not only CLK scared to lose (especially with the listing so close) but got noting to lose and therefore scared to bet big with the big boys, enforcing strict and low table limits. Now with a warchest, things might improve.

And in anticipation of your unfriendly stag call to your unfortunate hongkie friends, he's looking for a conductor.
Unfortunetly, I had to walk away... especially with Khun Chartchai always looking over my shoulder - I osso very scared. HAHAHAHAH...

oct 19 aint too far away.

Btw, I'm calling a strong sell half on jenntiing-mother now. CA can run for your life-lar.

cheers..

Salvatore_Dali said...

doraidd,

lol... you and i know why the thing is a sell. Numbers can be flexible if you know what i mean. Having low limits does not mean good risk mgmt, it may mean no capital to pay. There could 101 hanky panky stuffs, which may land me in trouble if i cite them ... if your actual profit margins are 10%, maybe 2% has to go somewhere else... it is hard to audit properly when a pistol is pointing at yr head. With Macau, Singapore, and Jenting ... plus the Phillipines and South Korea... why would anyone want to risk life and limb to gamble in Cambodia .... unless you are really one kind.