The capital reorganisation of Landing International Development Ltd came into effect on Wednesday after shareholders approved a 50-into-one share consolidation and capital reduction. The investor in casino resorts told the Hong Kong Stock Exchange on Tuesday that 99.8 percent of votes from shareholders at a special general meeting were in favour of the change.
In May, the board announced its proposal to reduce the number of issued shares to 2,934,898,710 from 146,744,935,542, with the par value remaining HKD0.01 (US$0.00127) each. The board said the move would “appeal to a broader base of institutional and sophisticated investors”. In Landing International Development’s statement to the HKEX on May 29, it said: “Greater participation by such investors, especially those with longer investment horizons, is likely to reduce the volatility of the company’s share price”.
In the second change stemming from the special meeting, the lot size for trading on the HKEX was reduced from 60,000 shares to 1,200 shares; a move the company says “would maintain the trading amount for each board lot at a reasonable level for the public to invest in its new shares”.
Landing International Development operates the Jeju Shinhwa World casino resort on the South Korean island of Jeju. The property opened to the public on February 25 with 155 live-dealer tables for games such as baccarat, poker, blackjack and sic bo; and 239 slot machines and electronic table games. The opening of the foreigners-only casino was delayed repeatedly.
Landing International Development said its Jeju Shinhwa World generated HKD650 million in gross gaming revenue in its first quarter.
The company is also seeking a gaming licence for a casino resort in the Philippines. The development in Metro Manila has been approved by the local government of the City of Parañaque, according to the company.
