Electronic gaming equipment supplier Asia Pioneer Entertainment on Monday announced it will list on the Growth Enterprise Market of the Hong Kong Stock Exchange.
APE plans to offer a total of 250 million shares, comprising of 25 million public offer shares, and 225 placing shares, at an offer price between HK$0.24 and HK$0.36 per share.
The Public Offer will open at 9:00 a.m. on Tuesday, October 31, 2017 and close at 12:00 noon on Friday, November 3, 2017.
The allotment results will be announced on Tuesday, November 14 2017.
It is expected that dealings in the company’s shares on GEM are expected to commence at 9:00 a.m. on Wednesday, 15 November 2017 under the stock code 8400.
APE is the fourth largest electronic gaming equipment supplier by revenue in Macau in 2016.
APE provides a full range of integrated services to its customers with the core business including: (1) the technical sales and distribution of electronic gaming equipment to casino operators; (2) the provision of consulting services to manufacturers of electronic gaming equipment and technical services to manufacturers and casino operators; and (3) the provision of repair services to casino operators.
In FY2016, APE reported revenue of approximately HK$52.58 million.
Net profit excluding listing expenses was approximately HK$13.89 million.
According to a press release from the company, APE has focused on the technical sales and distribution of ETGs in response to the rise in demand for ETGs. The company has exclusive distribution rights with five electronic gaming equipment manufacturers with the distribution agreements with these manufacturers ranging from one to five years.
The strong and stable business relationships with company’s major suppliers allow APE to offer casino operators a wide range of electronic gaming equipment, which will be able to drive growth in company’s consulting and technical services business.
APE, being a gaming machine agent independent of any electronic gaming equipment manufacturers, is able to offer its customers with a diversified range of products manufactured by different manufacturers.
Its business model to operate as a gaming machine agent also allows it to keep capital expenditure at a lower level compared to electronic gaming equipment manufacturers as production of electronic gaming equipment generally requires high committed capital investment.
The company is led by its executive directors, Mr. Allen Huie, chairman, executive director & compliance officer, who is responsible for the strategic planning and financial supervision of the company and Mr. Herman Ng, chief executive officer & executive director, who is responsible for overall business development, sales and marketing, each having more than 10 years of experience in the Macau gaming industry.
Mr Huie says, “We are pleased to witness this significant milestone in the company’s history. Through our listing on GEM of the Hong Kong Stock Exchange, we will tap into the international capital markets, which will not only broaden our capital and shareholder base, but also provide us with capital to fund our expansion plan to continue strengthening our leading position in the industry and further enhancing our competitive advantages, thereby driving the company’s long-term development.”
Mr. Ng added, “Being one of the first approved gaming machine agents in Macau, we have formed our particular expertise in localisation and customisation of electronic gaming equipment and have established a solid customer base as well as a leading position in the industry over the past decade. Looking forward, with the proceeds from the Share Offer, we are poised to leverage on our leading position in Macau to continue to capitalize on the potential growth of the gaming market in Macau. With our competitive edges and business plans in place, we are well-positioned to benefit from the enormous market opportunities.”