Description
Taiwan's Xiangxiang Games, which trades as XSGames, is a "first-rate investor" in the Hong Kong IPO of Palasino Holdings Ltd, which has stakes in European casino venues and hotels, it said in a filing on Monday night.
Online gaming content and land slot machine provider XSGames has subscribed 18.8% of Palacino's IPO shares, or just over 26.92 million shares, Palacino Holdings said. The ratio was calculated based on no overallocation options being exercised.
XSGames said in its own press release it was considering a new investment with a 3.4% stake in Palacino Holdings as a springboard to become "the first Taiwanese company to introduce slot machine products in Europe."
On the first day of trading on the Hong Kong Stock Exchange on Tuesday, shares of publicly traded Palacino Holdings rose about 24% from its initial public offering of HK$2.60 ($0.332) before falling back to a 6.5% gain by lunchtime.
Palacino Holdings is a Hong Kong-listed spin-off of Far East Consortium International, which invests in the Queens Wharf Brisbane Islands, including a casino resort in Brisbane, Queensland, Australia, promoted by Star Entertainment Group Ltd.
After the IPO of Palacino Corporation, the majority shareholder is 73.21% (assuming no over-allocation option is exercised), an ampoule bonus, a wholly-owned subsidiary of the Far East Consortium.
Palacino Holdings said its initial public offering brought total proceeds to HK$222.9 million, less than previously mentioned figures. The Palacino subsidiary netted HK$194.1 million after spending HK$228.8 million. XSGames' stake is valued at around HK$70 million.
Palacino Holdings has offered about 142.86 million shares globally, including 85.71 million new shares and 57.14 million existing shares. The number of shares in the Hong Kong public offering accounted for 30% of the event, according to Monday's filing.
Palacino Holdings operates three land casinos in the Czech Republic, one of which operates within the integrated resort. Most of the casino's operators are from nearby Austria and Germany, according to corporate information. It also operates three hotels in Germany and one in Austria.
Palacino Holdings also holds a license issued by the Maltese Gaming Authority, which allows it to operate online gaming businesses in its jurisdiction,
The company said in its prospectus that most of the IPO's net proceeds will be used "to maintain and further solidify Palacino's gaming industry market position in the Czech Republic through asset rehabilitation," "expand the company's gaming business in the Czech Republic, Central Europe or other markets through business or asset acquisitions and/or new gaming license bids," and that some funds will be used "for additional working capital."