Niraku Corp., an operator of pachinko parlors, plans to go public on the Hong Kong Stock Exchange where its stock is expected to start trading around April 8, sources close to the matter said Monday.
Fukushima-based Niraku is expected to raise some ¥5 billion ($41.7 million) and use the proceeds as investment and working capital, the sources said.
Niraku will be the second Japanese pachinko parlor operator to be listed on the Hong Kong bourse following Dynam Japan Holdings Co. in 2012.
Although some pachinko machine manufactures have gone public in Japan, no pachinko parlor operator has listed its shares on a Japanese bourse amid strong opposition as some view the game as a form of gambling.
There are shops which exchange winnings from pachinko parlors for cash.
Established in 1950, Niraku runs more than 50 parlors in eastern Japan centering on Fukushima Prefecture. For the business year through March 2014, it posted a pretax profit of ¥6.6 billion on revenue of ¥235.3 billion.
"It is true that we have applied for listing," a company official said, but declined to give details.