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AsianLogic to Float More Than Online Casino Games
by Elizabeth Nguyen, News Staff Writer
December 26, 2007
After five years since being founded by Playtech executive, Tom Hall,
AsianLogic has announced it will be floating on the London Stock Exchange this
coming Friday. The company will float at 111.62 pc, showing a market
capitalisation of GBP 123 million. A small slight against the Unlawful Internet
Gambling Enforcement Act (UIGEA), if you will, the flotation marks the first
time an online gambling company will launch an IPO since the UIGEA.
Considering how fast the Asian online gambling market is
growing, the move by AsianLogic will certainly prove to be wise and propitious
decision. Hall, who has been a senior executive at Playtech for several years,
said in a recent press release that in AsianLogic's pre-IPO research, a number
of investors jumped on board, thus signaling to Hall it would be smart to plan a
dividend payment schedule. Some analysts, like Stephen Ford at Collins Stewart,
predict shares could reach nearly 9 pc by 2009.
Based in Hong Kong, AsianLogic knows all too well the
regulatory framework of online gambling in China, especially in Hong Kong, where
online gambling is considered a major crime. Instead of a competitive risk,
AsianLogic is looking at a legal risk, which is fortunately very low. Hall said
the company has received local counsel from experts in Hong Kong that a chance
for prosecution of any offences related to online gambling is very low.
Perhaps this is a sign of the regulatory framework to come, or
perhaps not? Either way, things are looking good for AsianLogic, being one of
the only software developers to get a foot in China. Currently, AsianLogic
mainly offers online casino games to bettors in Singapore and Malaysia,
primarily due to a high level of broadband internet penetration. The company
will be using nearly GBP 41 million in raised funds to carry out an ambitious
expansion plan.
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