Macau hotel and satellite casino services firm Macau Legend Development Ltd has announced a proposal for a rights issue, with the intention of raising circa HKD93.0 million (US$12.0 million) by increasing its existing issued share capital by 50 percent.
The company stated in a recent filing that it was proposing to implement the rights issue on the basis of one rights share for every two existing shares held by shareholders of the firm.
The net proceeds from the exercise – after deducting expenses – are estimated to be about HKD86.9 million, stated the Hong Kong-listed firm.
“The company intends to apply the net proceeds from the rights issue for general working capital,” Macau Legend said.
The firm’s plan is to issue 310,059,356 rights shares – assuming there is no change in the total number of issued shares – at a subscription price of HKD0.3 per rights share. The company said it expects the first day of dealing in the new fully-paid rights shares to occur on December 2.
Macau Legend said it intends to apply the net proceeds from the rights issue for general working capital, including about HKD30 million for the payment of existing trade and other payables; circa HKD17 million for the payment of existing property tax; and the remaining for interest payments and general operating expenses.
The company reported a nearly HKD1.42-billion loss for the first six months of 2025, on revenue that was down 7.6 percent year-on-year, to HKD168.1 million.
The group recorded an impairment loss of just over HKD1.27 billion in the first half this year. That related to its satellite gaming operation, it stated in its half-year results filed in late August.
Macau Legend currently operates the waterfront gaming and leisure complex, Macau Fisherman’s Wharf (pictured), on Macau peninsula. It presently promotes satellite gaming business at Casino Legend Palace, relying on the rights of SJM Resorts Ltd.
The Casino Legend Palace must cease to be a satellite by the end of this year, under Macau’s revised regulatory framework for gaming. But in a September filing, Macau Legend said the company “may, or may not, consider to early terminate” the service agreement with the SJM group “before 31 December 2025”.
Such decision is subject to “operational data and performance of the gaming business”; and the “approval of early termination of the service agreement from the relevant authority(ies)”.
Macau Legend noted in its half-year report that it had net current liabilities of approximately HKD2.56 billion as of June 30.
The firm’s total bank and other borrowings were nearly HKD2.40 billion, due for repayment within the next 12 months from the end of the reporting period or “on demand”. Macau Legend’s cash and bank balances amounted to HKD21.7 million as of June 30, and its net assets were valued at just under HKD1.62 billion.
In its latest filing, Macau Legend said it was “currently experiencing financial difficulties, including tightened cash flow and increased operational pressure”.
“In light of these challenges and the capital-intensive nature of its operations, the company intends to undertake a rights issue as a means to strengthen its liquidity position, ensure the continuity of its core business operations, and provide financial flexibility to support future strategic initiatives,” the company stated.
Macau Legend also said financing its “funding needs” via the rights issue was “a better alternative than debt, as it would not result in additional interest burden and would improve the gearing of the group”.
