Shareholders in Hong Kong-listed casino investor Shin Hwa World Ltd approved on Tuesday a proposal from the company’s board regarding a new rights issue, with the intention of raising approximately HKD182.6 million (US$23.34 million).
The firm’s plan is to issue a maximum of almost 1.83 billion rights shares – assuming there is no change in the total number of issued shares – at a subscription price of HKD0.10 per rights share, as per a July announcement.
The estimated net proceeds from the exercise are expected to reach up to HKD178.8 million, the company said at the time.
Shin Hwa World Ltd is the promoter of Jeju Shinhwa World (pictured in a file photo), a resort complex with a foreigner-only casino in Jeju, South Korea.
The company is proposing to implement the rights issue on the basis of one rights share for every one share held by shareholders of the firm. The step is due to be completed by October.
Last month, Jun Hui International Finance Ltd, retained by Shin Hwa World Ltd as independent financial advisor, said the casino firm’s gearing ratio was “expected to improve” once proceeds were utilised from the new rights issue.
As per the financial advisor, Shin Hwa World Ltd’s gearing ratio “was approximately 19.6 percent” as of December 31, 2024.
Shin Hwa World Ltd reported in late August a net loss of about HKD244.4 million in the first six months of 2025, compared with a loss of HKD231.5 million a year earlier. That was on first-half revenue that fell by 21.8 percent year-on-year, to below HKD410.4 million.
Earlier this month, Shin Hwa World Ltd announced the rebranding of the gaming venue at the South Korean complex. The gaming venue is now branded “LES A Casino”, replacing the “Landing Casino” moniker.
