MESDAQ-BOUND Dreamgate Corp Bhd plans to assemble its own brand of gaming machines in the coming years in a move to become a leading total gaming solutions provider in Asia.
Managing director Datuk K.S. Chuah said the company would also be assembling gaming machines jointly with other leading gaming machine manufacturers.
“The group will utilise its intellectual properties, especially in-house developed gaming software and hardware, to assemble its own brand of gaming machines.
“In cooperation with other world-class gaming machine makers, we will also be assembling these machines under joint brands in a bid to make our presence further felt in the Asian market,” he told StarBiz.
Currently, the company does not have its own brand of products although it distributes other international brands.
Chua said the company also planned to be original equipment manufacturer for other global leading brand owners in view of the Asean Free Trade Area (Afta) programme.
The move, he said, would allow brand owners to target Afta member countries and take advantage of the reduced import tariffs on gaming machines manufactured in Malaysia.
Other than supplying and distributing machines, equipment and accessories for the gaming sector, the leisure and amusement technology solutions provider also provides support systems and accounting, monitoring, surveillance as well as performance software and systems for the gaming industry.
It also exports its gaming software products and accessories to countries such as Macau, Singapore, Vietnam, Cambodia, the Philippines and Myanmar. Currently, 70% of the group’s revenue is derived from exports and the balance from the domestic market.
For the financial year ended Dec 31, 2002, the group reported a pre-tax profit of RM9.87mil from revenue of RM42.7mil compared with RM8.79mil and RM51.5mil respectively in 2001. For the six months ended June 30, 2003, pre-tax profit stood at RM6.95mil and revenue at RM36.6mil.
Chua said Dreamgate would continue to focus on the Asian market because as a homegrown company, it understood Asian culture and business practices better and therefore, was in a better position to service the region.
As it was near the Asian markets, the company could provide better technical and marketing support, he said, adding that the increasing opportunities arising from cruise ships providing gaming facilities in Asia was another reason the company had chosen Asia as its prime market.
For its initial public offering, Dreamgate is making a public issue of 11,428,000 10 sen shares at an issue price of 50 sen per share.
Out of this, 6 million shares would be allocated to the company's eligible directors and employees, its subsidiaries and associated companies and 5,428,000 to the public.
Dreamgate would also be making a placement of 63 million 10 sen shares at 50 sen per share.
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