In Macau, electronic gaming machine distributor Asia Pioneer Entertainment Limited has reportedly announced that it is hoping to raise approximately $6.4 million by placing some 250 million new shares on the small-cap Growth Enterprise Market of the Hong Kong Stock Exchange.
According to a report from GGRAsia, trading of the new shares is expected to begin on the morning of November 15 while the firm declared that a significant portion of any proceeds from the offer are to be utilized to acquire new electronic gaming machines from foreign developers before trying these out in Macau.
Asia Pioneer Entertainment Limited reportedly already has relationships with numerous developers including Alphabet Technology Limited from Taiwan and Slovenian firm Spintec and stated that it would be using around 43.4% of any profits for ‘upfront deposits for manufacturers to provide more trial products’.
GGRAsia reported that Asia Pioneer Entertainment Limited is a major local player in the supply of refurbished gaming equipment and explained that it moreover intends to earmark approximately 12.8% of any proceeds to buy and recondition more such products before reselling these ‘to customers who will have Southeast Asia as end markets’.
Allen Huie Tat Yan, Chairman for Asia Pioneer Entertainment Limited, reportedly told GGRAsia that the firm’s revenues from refurbished gaming equipment were ‘still quite small’ but that the ‘margin percentage’ could be ‘quite high’.
“We hope that we can work on this field more after being listed,” Huie reportedly told GGRAsia.
Huie additionally reportedly proclaimed that cash is to furthermore be set aside to expand his firm’s marketing, technical and sales teams alongside buying ‘tools and equipment and new enterprise resource planning systems’. He stated that the remainder would subsequently be set aside for ‘general working capital’ and to help the company relocate to larger offices.
“With more money, we can introduce new types of products,” Huie reportedly told GGRAsia. “If we have [access] to the capital market, we can then buy more machines and do more. It will be much quicker for us to expand and go to the next stage.”