The board of casino resort investor Landing International Development Ltd is to propose a capital reorganisation comprising of a fifty-into-one share consolidation and a capital reduction, the firm said in a Tuesday press release.
The capital reorganisation is expected to take effect on July 4, subject to certain conditions, including obtaining shareholders’ approval, said the Hong Kong-listed company.
Landing International operates the Jeju Shinhwa World casino resort on South Korea’s Jeju island. The company is also applying for a gaming licence to develop a casino resort at Entertainment City, in Manila, the Philippines.
As a result of the proposed capital reorganisation the number of issued shares will be reduced from 146,744,935,542 shares to 2,934,898,710 consolidated shares and the par value of each issued share will remain at HKD0.01 (US$0.00127).
“The company believes that a higher absolute share price following the consolidation will appeal to a broader base of institutional and sophisticated investors,” said Landing International.
It added: “Greater participation by such investors, especially those with longer investment horizons, is likely to reduce the volatility of the company’s share price.”
The company also proposed to change the board lot size for trading on the Hong Kong Stock Exchange from 60,000 shares to 1,200 new consolidated shares.
“Maintaining the par value of its shares at the low value will allow the company greater flexibility in setting the issue price for future equity fund raising exercises, while the change in the board lot size would maintain the trading amount for each board lot at a reasonable level for the public to invest in its new shares,” explained the casino investor.
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