The Taiwan-backed operator of Vietnam's biggest casino said it will list its shares on the Ho Chi Minh Stock Exchange, raising more than US$100 million, by the end of July, slightly earlier than expected. Royal International Corp (RIC), which runs the casino in Ha Long Bay, will list 8,589,119 shares, or 24.28 percent of the company, on July 31 at an initial price of VND200,000 ($12.4), RIC's Equity Department head Tran Trong Nghia said Tuesday.
The pricing valued the whole company at $438.6 million.
Investors can trade RIC shares within a 20 percent band on their debut date, according to the market rules.
Earlier this month, the company said a paperwork hitch in its listing application would the delay the initial public offering until the first week of August.
RIC, 63-percent-owned by Taiwanese investors, will be the only casino operator listed on Vietnam's stock market which now has more than 100 companies.
The Southeast Asian country is encouraging investors to build high-end hotels, resorts, and golf courses to help sustain a boom in tourism, particularly from South Korea and China.
But casinos are only allowed to cater to foreign tourists as gambling is banned in Vietnam.
So far only two entertainment firms, Phuong Nam and Alta, are listed on the Ho Chi Minh exchange along with one hotel operator, Saigon Hotel.
RIC also operates 130 luxury villas in the UNESCO-Heritage Ha Long Bay, and it has contracts with US hotel operator Starwood Hotels & Resorts to manage two newly built hotels in Ha Long city.
RIC aims to double its 2007 net profit to $10 million from sales of $20 million, up from last year's earnings of $5 million.
Earlier this month Nghia told Reuters that RIC has asked for government permission to invest $300 million in an international airport in Van Don, near Ha Ong Bay in exchange for 1,500 hectares of oceanfront land for other casino and hotel projects.
Foreign investment in Vietnam's burgeoning tourism sector has reached around $700 million so far this year, mostly in hotels and golf courses.
Source: Thanh Nien
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