Former Macau satellite casino operator Macau Legend has seen a lackluster uptake in its latest rights issue, with just 49.49 percent of the new shares subscribed to.
In a Thursday filing the operator indicated that it still managed to raise HK$93 million ($11.93 million) in gross proceeds from the subscription, totaling approximately HK$86.4 million ($11.08 million) after the deduction of fees.
The company says that the proceeds will be used to pay down existing debt.
The new subscription put on offer nearly 310.06 million shares, with 156.61 million being under-subscribed and taken up by East Asia Securities and Platinum Broking, given their role of co-underwriters in the underwriting agreement. This represents approximately 16.84 percent of the enlarged issued share capital of the company.
After the new issuance, former Tak Chun junket head Levo Chan – who became CEO of Macau Legend in 2020 after becoming the company’s largest shareholder – saw his holdings (via an investment company) fall from 33.08 percent to 22.06 percent.
Chan stepped down from the CEO role amongst Macau’s junket crackdown and is currently serving a 13-year prison sentence in Macau for illegal gambling-related crimes.
Macau Legend’s current CEO Li Chu Kwan, who participated in the rights issue, maintained his 25.83 percent shareholding via investment vehicle Elite Success (owned by Li, his wife and son), as well as his personal 1.76 percent stake.
The company now has a total of over 930.17 million issued shares, compared to 620.11 million before the share expansion program.
Macau Legend, which used to run the Legend Palace casino under a services agreement with SJM Holdings and still operates the waterfront Macau Fisherman’s Wharf complex, has been grappling with heavy losses.
The firm reported a net loss of HK$1.42 billion ($182.7 million) in the first half of 2025, after a HK$622 million ($80 million) loss last year.
The company had flagged ‘multiple uncertainties relating to going concern’ in its financial results, pawning off assets including its Hengqin property as its borrowings topped HK$2.39 billion ($307.2 million) due for repayment within 12 months or ‘repayable on demand’. This compares to just HK$21.7 million ($2.8 million) in cash and bank balances as of June 30th, 2025.
The company also recently lost control of its planned casino-resort in Cape Verde’s Praia, after the government seized the stalled development’s land.
