Macau hotel and satellite casino services firm Macau Legend Development Ltd has proposed a share consolidation and enlargement of its board lot size for the trading of its stock on the Hong Kong bourse.
The aim is to increase its share price and to facilitate trading activities, according to a filing Macau Legend lodged on Friday after Hong Kong Stock Exchange trading hours.
Macau Legend has mooted that every 10 existing shares of the issued and unissued share capital of the firm be consolidated into a single share.
The company also said that “due to the financial needs of the group,” it was “considering fund-raising exercises… including but not limited to, rights issue after the share consolidation and the change in board lot size” became effective. It added however, it “does not have any concrete plan” for such fund raising at present.
As of Friday, the authorised share capital of Macau Legend was HKD1 billion (US$127.4 million) divided into 10 billion shares each of HKD0.1 par value. There were, as of that trading day, 6,201,187,120 existing shares in issue, that were either fully paid, or credited as fully paid.
Macau Legend currently operates the waterfront gaming and leisure complex, Macau Fisherman’s Wharf (pictured in file photo), on Macau peninsula.
There, the firm presently promotes satellite gaming business at Casino Legend Palace, relying on the rights of SJM Holdings Ltd.
Macau Legend will however, have to close Casino Legend Palace by year end. That was after SJM Holdings decided not to continue to run the venue once the full effect of new satellite regulations take effect on January 1, 2026. The impending change follows a three-year grace period to allow for satelites and gaming licence holders to transition to a management fee model if they so wished.
An extraordinary general meeting is to be held on July 30 for shareholders to approve Macau Legend’s share consolidation plan. The firm said the proposal, if approved, should be in effect from August 1.
On that basis, Macau Legend would have 620,118,712 consolidated shares in issue which were either fully paid or credited as fully paid. The authorised share capital of the firm would remain at HKD1 billion, but would be divided into 1 billion consolidated shares of HKD1.0 each.
The Hong Kong-listed firm also proposed increasing its board lot size from 1,000 existing shares to 4,000 consolidated shares.
Listing rule requirements
In the Friday filing, Macau Legend noted daily closing prices for the existing shares had been “very close to or below HKD0.10” for “most of the time for the past two months”. That had “almost reached extremity” at the low end, as defined by the bourse’s listing rules.
Macau Legend’s value per board lot of 1,000 existing shares is also only HKD89.00, based on the closing price of HKD0.089 per existing share as of Friday trading. That value is far lower than is recommended by the prevailing trading guide from the Hong Kong bourse. It states that – considering the minimum transaction costs for securities trading – the board lot value should be greater than HKD2,000, the firm mentioned in the filing.
Macau Legend said with upward adjustment in the trading price of the consolidated shares, “the board believes that investment in the consolidated shares would become more attractive to a broader range of investors”.
This would help in “improving the liquidity of the consolidated shares and further broadening the shareholder base of the company,” Macau Legend stated in the Friday filing.
The share consolidation would not change the “underlying assets, business operations, management or financial position” of the firm, nor alter the proportionate interests of the shareholders, the filing stated.
