OFFERING STATISTICS by lonyoo

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									OFFERING SUMMARY

 Company                           :     NagaCorp Ltd. (“the Company”)
 Sector                            :     Gaming
 Stock code                        :     3918
 Listing exchange                  :     Hong Kong Main Board
 Number of offer shares            :     500m new shares (450m placing shares + 50m public offer shares)
                                         Over-allotment option (75mn shares)
 Offer price                       :     HK$1.25 – HK$1.60
 Market capitalization             :     HK$2.5bn – HK$3.2bn
 Historic PER                      :     9.6x - 12.3x (undiluted)
                                         12.9x - 16.5x (fully diluted)
 Total issue size                  :     HK$625m – HK$800m
 Shareholders                      :     Tan Sri Dr Chen–69.6%, Song Meng Kong–3.0%, others–2.4% & the
                                         Public–25.0%

TENTATIVE TIMETABLE

Book opens                             25 September 2006
Book closes                            12:00pm on 3 October 2006
Public offer opens                     4 October 2006
Public offer closes                    9 October 2006
Listing (HKSE)                         17 October 2006


FINANCIAL DATA

                                        Year ended 31st December,                 Five months ended 31st May,

                            2003                     2004                2005         2005                      2006
                       US$'000           YoY       US$'000      YoY     US$'000      US$'000       YoY       US$'000
                                                                                   (unaudited)
Revenue             55,175             6.09%     58,534      9.82%     64,282     20,561         84.85%    38,007

Cost of Sales       (23,641)           20.68%    (28,530)    -13.94%   (24,554)   (8,855)        44.37%    (12,784)

Gross Profit        31,534             -4.85%    30,004      32.41%    39,728     11,706         115.47%   25,223

Profit from         20,872             -9.65%    18,857      39.43%    26,293     5,923          204.58%   18,040
operations
Profit before       16,792             12.29%    18,856      39.44%    26,293     5,923          204.58%   18,040
taxation
Income tax          (723)              66.25%    (1,202)     12.48%    (1,352)    (563)          12.61%    (634)

Net Profit          16,069             9.86%     17,654      41.28%    24,941     5,360          224.74%   17,406

GP Margin           57.15%                       51.26%                61.80%     56.93%                   66.36%

Net Margin          29.12%                       30.16%                38.80%     26.07%                   45.80%



COMPANY DESCRIPTION
BUSINESS

    The Company is engaged principally in the management and operation of the only licensed casino in Phnom
     Penh, the capital city of Cambodia. Its rights to operate the casino, which are granted by the Cambodian
     Government pursuant to the Casino Licence, are valid for a period of 70 years from 2nd January, 1995. Its
     right to operate within the Designated Area (Phnom Penh, Cambodia and the area within a radius of 200km
     of Phnom Penh, except the Cambodia-Vietnam border area, Bokor, Kirirom Mountains and Sihanoukville) is
     exclusive (save for the right to operate gaming machine stations) until the end of 2035.

    Its gaming operations began in 1995 and have been profitable since 1996. Its Casino License allows it to
     operate 24 hours a day throughout the year and has no restriction as to the location and size of the casino
     complex, casino operating areas, number of tables and type of games within the Designated Area. As at the
     Latest Practicable Date, its casino operated 44 gaming tables offering Mini Baccarat, Roulette, Blackjack,
     Tai Sai and Caribbean Stud Poker and 211 gaming machine stations. From May 1995 until the end of
     September 2003, it operated its casino on a barge moored along the banks of the Bassac River in a central
     location in Phnom Penh. The barge was close to many tourist attractions such as the National Museum, the
     Royal Palace and the Independence Monument in Cambodia.

    On 1st October, 2003, it relocated its casino operations to its new hotel and entertainment complex called
     NagaWorld, a location on land a few hundred metres away from where the barge was moored. Upon full
     completion, to the best knowledge of its Directors, NagaWorld will be the only entertainment complex with
     gaming, hotel, entertainment and recreational facilities within the Designated Area. NagaWorld will consist
     of an eight-storey entertainment wing, a 14-storey hotel wing and a car park block. It is strategically situated
     on a wide landscaped boulevard next to the Hun Sen Garden near the riverfront district of Sisowath Quay in
     Phnom Penh. As at the Latest Practicable Date, all eight storeys of the entertainment wing are structurally
     complete with the ground and part of the first floor completely furnished. The entertainment wing when fully
     operational will also house food and beverage outlets, leisure, recreational and entertainment facilities. All 14
     levels of the hotel wing are also structurally complete with fittings work being carried out in the lobby and
     some hotel rooms.

    Its casino is currently located on level one of the entertainment wing of NagaWorld Customers who wish to
     play its table games are required by its Casino Control Rules and in accordance with best practice within the
     Cambodian regulatory framework to be foreign passport holders and can be divided into two distinct
     categories, namely Public Players and STG Players. All customers, including Cambodians, are allowed to
     play its gaming machine stations. As at the Latest Practicable Date, it derived its revenue principally from
     casino operations.

COMPETITIVE ADVANTAGES

♦ Exclusive casino license

Its Casino License is valid for a period of 70 years from 2nd January, 1995 and it has the exclusive right to
operate the only casino within the Designated Area up to the end of 2035 (save that the right to operate gaming
machine stations is not on an exclusive basis).

♦ Benefits of the location

NagaWorld is located in Phnom Penh. It is the capital city of Cambodia with a population of approximately one
million. The city is the commercial hub of Cambodia and is strategically located in the south of the country where
the Mekong, Bassac and Tonle Sap Rivers converge. Phnom Penh is also a convenient location for international
tourists traveling to Cambodia for destinations such as Siem Reap and the temples of Angkor. Phnom Penh itself
also boasts a number of tourist attractions such as the Royal Palace, the Silver Pagoda and the National Museum.
Phnom Penh is in close proximity to its traditional markets namely, Singapore and Malaysia in the south, the PRC
in the north, and nearby markets namely, Thailand in the west and Vietnam in the east. Phnom Penh is accessible,
by air, within approximately three hours from Singapore, Malaysia and the PRC, and about 60 minutes from
Bangkok, Thailand and Ho Chi Minh City, Vietnam. Customers can reach NagaWorld in about 30 minutes by
road from Phnom Penh International Airport.

♦ Experienced management

Its current management team comprises a group of experienced executives with substantial experience and
knowledge of casino operations. Tan Sri Dr Chen, its controlling Shareholder, chief executive officer and a
Director, has been active in business in Cambodia since 1990 and has gained knowledge of the local commercial
landscape valuable to the future development of its operations. In addition, certain of its senior management have
over 10 years of experience in running casino operations in Cambodia.

♦ Strong market presence and loyal customer base
Its casino is well known in Phnom Penh and Cambodia as it is the only licensed casino within the Designated
Area. A number of its customers have been with it for over eight years and the Company believes it has a loyal
customer base.

FUTURE PLANS

The Company’s vision is to become a world class casino operator with standards comparable to those casinos
operating in countries such as Australia and the United States and for NagaWorld, as an integrated hotel and
entertainment complex, to become a preferred tourist destination, alongside Cambodia’s ancient temples of
Angkor, for visitors travelling to Cambodia. Its hotel wing of NagaWorld, upon completion, will house a
collection of entertainment, leisure and retail outlets which will allow it to develop gaming and non-gaming
revenue streams. Its focus will be to further expand its markets in the PRC and ASEAN countries such as
Thailand and Vietnam. In order to achieve its objectives, it intends to implement the following business
development strategies:

♦ Enhance Marketing Strategies and Footprint

−    Build awareness of NagaWorld and position as a prime tourist destination in Asia.
−    Market as a one stop hotel casino entertainment complex for both gaming and non-gaming patrons in Asia.
     -Strengthen commercial ties with STG and marketing efforts in Naga’s traditional markets like PRC,
−    Singapore and Malaysia. -Marketing strategies to penetrate immediate neighbors like Vietnam and Thailand.

♦ Enhance Product and Services
− Offer wider range of products (e.g. gaming machines), upgraded facilities, as well as improved and refined
    comprehensive VIP services to all customers.

USE OF PROCEEDS

♦ For the development of NagaWorld (approximately 84% of the proceeds)
♦ For the development of gaming facilities (approximately 13% of the proceeds)
♦ As general working capital (including IPO expenses) (approximately 3% of the proceeds)

DISCLAIMER

This fact sheet is based on information obtained is believed to be reliable, but Synergy Capital do not make any
representation or warranty as to its accuracy or completeness. Neither Synergy Capital nor any of our affiliated
companies, nor any individuals connected with the Group shall accept legal responsibility arising from the use of
or reliance upon request.

								
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