Online lottery distributor Lucky Circle Corp. may push through with its planned listing by way of introduction—or without selling newly issued shares—on the Philippine Stock Exchange (PSE) by early next year, a top official said.
The move, which aims to unlock more value for shareholders of its parent firm Pacific Online Systems Corp., will prepare the company to become a new vehicle for investing in new ventures in the gaming sector.
“Our board has approved that start of the process that will lead to the listing,” Pacific Online chairman and CEO Willy Ocier said last week.
To start the process, Ocier said Pacific Online, which is a public firm, would issue property dividends in the form of Lucky Circle shares to the former’s shareholders. He said this would take about six months.
“Once we complete the property dividend, Lucky Circle will have more than 300 shareholders and by definition, will become a public company,” he said. The company plans to submit its application to be allowed to list by introduction soon.
“What we want to do is to establish a new vehicle for investing in future gaming and lotto initiatives. We will use Lucky Circle to expand our presence all over the country,” Ocier said.
Companies that list by way of introduction are required to hold an initial public offering (IPO) within a year of their listing. This is part of the new set of rules on listings issued by the PSE last March. Others included the tighter rules on valuation and lock-up requirements on shares of substantial shareholders.
Apart from owning lottery outlets in Visayas and Mindanao, Lucky Circle also has a presence in Luzon as a selling agent of Philippine Gaming Management Corp., the Philippine Charity Sweepstakes Office’s sole lottery equipment provider for Luzon.
Given the exclusive agreement between Lucky Circle and the SM shopping mall group, PGMC also employs Lucky Circle as selling agent in Luzon. Lucky Circle owns, manages and operates 115 outlets nationwide.
Its parent firm Pacific Online expects to post a 16-percent growth in profit for the year to about P500 million as it opens more lotto terminals in its Visayas and Mindanao concession areas.