Finance Asia – Asia’s gaming industry is on a roll and attracting a wider array of investor as dominant centre Macao continues expanding and as rival locations emerge.
Because casino developments are capital-intensive and can take 2-3 years to complete, gaming companies have historically tended to attract different types of investors with different needs over different phases of a development.
They have tended to raise funds in a cycle by issuing equity first and then high-yield or convertible bonds and, finally, by getting syndicated bank loans, industry experts say.
But what’s evident from the gaming sector’s capital raising efforts in 2013 is that an even broader range of names are now looking to get involved – a trend industry experts say is set to continue.
Non-Macau gaming companies have been particularly active in capital markets.
Take a few examples. Hong Kong-listed Summit Ascent in October raised $69 million through a share placement to fund a casino-resort project in Russia, while NagaCorp, a gaming and entertainment hotel complex operator in Cambodia, raised $156 million from a top-up placement in March.
Gaming firm Melco Crown Philippines in April raised $377 million from an equity placement to fund a casino in Manila.
“This year we need to highlight Philippines as there were lots of share placements out of the country,” said Jeff Zielinski, a partner of Hong Kong-based Azentus Capital Management, which invests in the gaming sector.
