Shin Hwa World expects to raise HK$258.6 million ($33.1 million) in net proceeds from its new rights issue. The company plans to use the funds to enhance its core business and support growth.
According to a filing with the Hong Kong Stock Exchange on Monday, the company received eight valid acceptances from the provisional allotment letters, totaling 554,008,875 rights shares. Additionally, it received seven valid applications for excess rights shares, amounting to 16,348,256 shares.
The valid acceptances account for 54.62 percent of the total number of rights shares offered, while the applications for excess shares represent 1.61 percent of the offered rights shares.
The rights issue became unconditional on July 15th, and the 16,348,256 excess rights shares will be allotted and issued to qualifying shareholders.
According to the same document, Yang Zhihui, the former chairman and executive director of Shin Hwa World, is no longer the largest substantial shareholder following the completion of the rights issue.
His stake has decreased from 29.21 percent to 9.74 percent. Meanwhile, the shareholding of public shareholders has been diluted from 36.16 percent to 26.45 percent as a result of the rights issue.
Shin Hwa World is the developer behind Jeju Shinhwa World, a complex featuring a foreigner-only casino located in Jeju, South Korea.
