As it looks to develop a casino on South Korea’s Jeju Island, Hong Kong-listed New Silkroad Culturaltainment Limited is hoping to raise at least $188.96 million via a proposed share subscription offer to existing shareholders.
Controlled by Chinese firm Macrolink Real Estate Company Limited via its Macrolink Culturaltainment Development Company Limited subsidiary, New Silkroad Culturaltainment Limited is a leading wine distributor in Asia and revealed that it intends to issue between 916.45 million and 976.85 million new ordinary shares each priced at around $0.20. It declared that current investors will be able to buy two of the new shares for every five currently held with the price representing a premium of approximately 4.58%.
“The open offer will provide capital for the development of New Silkroad Culturaltainment Limited’s cultural tourism and gaming projects on Jeju Island,” read a statement from New Silkroad Culturaltainment Limited. “It will also help to reduce the company’s financing costs and gearing ratio, enhance the financial position and future working capital base, further strengthening the company’s capital structure and allow the company the capacity to grasp the right investment opportunities as they arise.”
Hong Kong-based New Silkroad Culturaltainment Limited stated that the proposed open offer is to be fully underwritten by Macrolink Culturaltainment Development Company Limited and will be subject to shareholder approval at its next general meeting.
“With the booming gaming and cultural tourism industry on Jeju Island, we hope the open offer will equip us with a solid financial foundation for the development of a world-class gaming and entertainment complex and a large-scale tourist resort in South Korea,” said Paul Ng, Executive Director for New Silkroad Culturaltainment Limited. “Through the open offer, we hope to provide all shareholders with an equal opportunity to participate in the long-term development of the company, which shall benefit the company and the shareholders as a whole. Our major shareholder’s commitment in fully underwriting the offer shares also demonstrates its confidence in the long-term development and prospects of the company.”