Canadian Casino Company Is Thinking of Funding Asian Casino
Posted on September 12, 2008 - Filed Under Casino Articles, Casino games, Gambling News
Asian Coast Development Ltd., a casino company from Canada is looking forward to offer $1 billion public offering in Hong Kong within the coming two years for funding its plan of building a giant gambling resort in Vietnam.
Asian Coast Development Ltd is based in Vancouver. It is planning to build this gambling resort on the Ho Tram Strip, which is nearly 80 kilometers away from the Ho Chi Minh City. It is expected that the project will be completed by 2010.
According to PricewaterhouseCoopers, Asia-Pacific happens to be the quickest developing region for gambling in the world. The revenues from casino-based gambling are being hoped to nearly double-up from $16.5 billion in 2007 to $34.4 billion US.
Macau, which is a neighbor of Hong Kong, has already been able to beat the city of Las Vegas as the largest gambling center of the world. It has been recently seen that investors in Hong Kong are betting against the casino sector.
Billy Ng, who is an analyst at Hong Kong JPMorgan, said that craving for a casino IPO in the near future is not going to be strong. He thinks it to be an impossible thing and also something uncertain.
There are some serious headaches with several Hong Kong-listed casino companies of Macau. This is mainly due to the fast development that is taking place in the world of casinos that would end up in irrational competition.
Another major concern is that Beijing has put restrictions on entry to the mainlanders. It has also decelerated the tempo of approving new projects in the island. There has been a fall in stock to below two thirds of SJM, which has got plans to expend $2.6 billion US in building four Macau casinos.
Michael Aymong, chairman of Asian Coast Development, has said during his interview with Bloomberg that people in Hong Kong has knowledge about the casino industry because of Macau. Therefore, they are eagerly looking forward to the stock exchange of Hong Kong for the coming two years.
The Macau gambling industry has been able to attract a huge investment from the casino operators of the city of Las Vegas. However, whether it is Vietnam, Las Vegas, or Macau, the investors are undergoing a fear that an economic downturn globally will decrease the number of visitors to the casinos.
The casino investors just have to wait and watch for the time being.
