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Asian NagaCorp Limited Considering New Share Offering to Weather the Storm Caused by the Coronavirus Pandemic

Asian NagaCorp Limited Considering New Share Offering to Weather the Storm Caused by the Coronavirus Pandemic
NagaCorp Limited casinos in problems over coronavirus pandemic

NagaCorp Limited is one of the most successful, renowned Asian leisure, gaming, and hotel companies. The company is present across several Asian countries including Cambodia where it owns and operates the country’s largest gaming and hotel resort, the NagaWorld facility. This Hong Kong-listed company also owns and operates the only Phnom Penh’s fully integrated hotel and casino complex.

It is worth mentioning that NagaCorp Limited holds a seventy-year casino license running until 2065 in Cambodia. Consequently, it also has a monopoly within a one-hundred-and-twenty-mile radius of Phnom Penh at least until 2045. The company’s Naga casinos opened back on the 1st of May in 1995 in Phnom Penh. At the time, it was a riverboat casino before moving to land and its current location in 2003. Like every other company of this kind in the industry, NagaCrop Limited has been negatively affected by the ongoing coronavirus pandemic.

Released several days ago by the company’s officials, NagaCorp Limited is considering whether to offer a new share offering to combat the storms caused by the ongoing coronavirus pandemic. The company’s possible new share offering will also top up NagaCorp liquidity as well as give the company more resources so it can battle a massive slowdown in its business also caused by the coronavirus pandemic.

Consequences of the Coronavirus Pandemic

Also revealed by the company’s officials, the Hong Kong-listed firm responsible for the largest casino resort in Cambodia, the NagaWorld facility has enough cash to endure around eighteen months of highly reduced revenues. The revelation was made back on the 22nd of June according to Inside Asian Gaming and other local news outlets.

Inside Asian Gaming also noted that the casino facility located within the iconic NagaWorld facility has been temporarily shuttered since the 1st of April due to an initiative led by the country’s government to stop the spread of the coronavirus strain. The same source also revealed that the company’s flagship property located in Phnom Penh is only operating one hotel at significantly reduced capacity while its visitors are provided with only limited food and beverage services.

One of the major consequences of the ongoing coronavirus pandemic to local businesses and casino operators is seen in disappointing financial results for the first quarter of this year and NagaCorp is not an exception. The company’s officials revealed that its average expenditure for one month regarding its venue in Cambodia had been $18.4 million before the coronavirus-related lockdowns were set in place.

Before the lockdown, the company’s monthly expenditure for its venue in Cambodia encompassed around $13.9 in standard operational costs as well as $3.2 million in maintenance and capital costs. Nonetheless, this outflow has been significantly reduced to around $3.9 million while the company holds deposits and cash worth around $527.1 million.

NagaCorp Limited’s New Share Offering

When it comes to the company’s new share offering, the company’s officials revealed that NagaCorp Limited’s Chief Executive Officer as well as its majority shareholders Chen Lip Keong would be willing to invest around $45 million via ChenLipKeong Capital Limited to show his confidence and support.

In the meantime, the company is pushing ahead with its NagaWorld expansion worth $3.5 billion which will bring extra retail space, a spa, a massive amusement park as well as around five thousand more hotel rooms and extra restaurants to the luxurious resort. The company responsible for the venue is also considering expanding its casino floor to host two thousand and five hundred extra slot machines and around eight hundred extra gaming tables.

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