Melco International announces rights issue
The company plans to raise HK$781.07m.
Hong Kong.- Melco International Development has announced plans to issue up to 758,341,877 rights shares at the subscription price of HK$1.0286 (US$0.13) each, structured as one rights share for every two existing shares held on the record date.
The final number of rights shares will depend on the number of shares issued by the record date. The company’s statement gives two possible outcomes: up to 758,341,877 rights shares, which would raise about HK$780.03m (US$100.6m), or up to 759,350,377 rights shares for approximately HK$781.07m (US$100.7m) if the company exercises outstanding share options.
The company said there is no minimum amount to be raised. A committed shareholder holding 61.44 per cent of issued shares has irrevocably undertaken to take no less than 413,000,000 of the rights shares and not to dispose of current holdings until the rights issue concludes.
The statement reads: “The net proceeds of the rights issue will primarily be used to repay a portion of the principal amounts outstanding in the 2021 credit facility and to pay the interest of the 2021 credit facility.
“To qualify for the rights issue, a shareholder must be registered as a member of the company on the record date and not be a non-qualifying shareholder. In order to be registered as a member of the company on the record date, all transfer documents of the shares (together with the relevant share certificate(s)) must be lodged for registration with the company’s share registrar, Tricor Investor Services Limited, at 17th Floor, Far East Finance Centre, 16 Harcourt Road, Hong Kong no later than 4:30 p.m. on May 19.”
Earlier this month, Melco International shared its financial results for the year 2024. It posted net revenue of HK$36.17bn (US$4.65bn), an increase of 22.5 per cent in year-on-year terms. The growth was mainly attributed to the recovery in inbound tourism to Macau in 2024 and the ramp-up of operations following the opening of Studio City Phase II in April 2023 and City of Dreams Mediterranean in mid-2023, which led to improved performance in casino and hospitality operations.
The group’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was HK$9.03bn (US$1.16bn), compared with HK$7.51bn (US$965.5m) in 2023. The net loss attributable to owners amounted to HK$784.6m (US$100.9m), a 55 per cent reduction.
Casino revenue totalled HK$29.43bn (US$3.78bn), up 22.2 per cent year-on-year. Rooms revenue was HK$3.29bn (US$422.96m), up 24.5 per cent, while F&B revenue was HK$2.23bn (US$286.7m), up 36.4 per cent. Entertainment and retail revenue rose by 4.7 per cent to HK$1.21bn (US$272.55m).
