Silver Heritage Group launches A$25 million IPO

HK-based Silver Heritage Group Limited (SHG) is seeking to raise A$25 million (US$18.8 million) in an initial public offering (IPO), as it targets listing on the ASX in August 2016.

Under the Prospectus, SHG is offering 62.5 million ordinary shares in the company at an offer price of A$0.40 per share. The indicative market capitalisation of the company post-listing is approximately A$80 million.

According to the press release, the funds raised through the offer will be used for the expansion of the group’s projects, including the development of Tiger Palace Resort, the first integrated resort built for Indian casino players located in Nepal close to the Indian border.

With only six licensed live table casinos in India and only three licensed casinos operating in Nepal, all of which are located in Kathmandu, Silver Heritage Group will have a significant market advantage through its flagship Tiger Palace Resort. The new resort will be a welcome alternative entertainment and leisure destination for an expanding demographic of Indian tourists. Over 430 million Indians live within a day’s drive of the Nepal border

Founded in 2003, Silver Heritage Group has grown rapidly from the supply and management of slot machines across Asia to an experienced regional gaming management operation, with interests in casinos and gaming venues in Nepal, Vietnam, Laos and Cambodia.

The company’s core growth strategy going forward is to focus on developing casino resorts on the

India-Nepal border where there is strong demand from the emerging Indian middle class residents in the Indian states bordering Nepal who currently have restricted access to gaming facilities.

Commenting on the company’s key strengths Silver Heritage Group’s CEO Mike Bolsover said: “We’ve been in Asia for over 12 years and in Nepal since 2012. We are a group that develops projects over time and only where we see significant competitive advantage. We focus on mid-size opportunities and  improving operating performance to best practice standards. This strategy has allowed us to build significant expertise and local knowledge while growing profitability and generating attractive returns on capital. We successfully applied for a license to operate The Millionaire’s Club & Casino in Kathmandu in early 2015, and in early 2017 will launch our beautiful new facility, Tiger Palace Resort.”

With that philosophy in mind, Mr Bolsover said the company had been encouraged to list on the Australian Securities Exchange as a result of the market’s depth of understanding for gaming stocks such as Crown, The Star Entertainment Group and Tabcorp, along with its reputation as one of Asia’s leading capital markets.