Okura Holdings to raise US$2.55m for pachinko expansion and renovation

Okura is to place 100 million shares on the market, with 75 per cent of net proceeds to fund new pachinko machines.

Japan.- Okura Holdings has announced plans to raise HK$20m (US$2.55m) through a share placement to purchase additional pachinko and pachislot machines and renovate its current pachinko halls. The company expects to receive net proceeds of approximately HK$17m (US$2.17m) from the placement.

It says 75 per cent of the funds raised will go towards the purchase of new machines and 15 per cent towards renovations. The remaining 10 per cent will be allocated to general working capital purposes.

The share placement, which will total 100 million shares at HK$0.2 per share, represents approximately 20 per cent of the company’s existing issued share capital – 16.67 per cent after the issue. The placement will be open to “not less than six placees” until April 26, as procured by the placing agent.

The pachinko business has been experiencing a prolonged decline, while rising costs of living in Japan have reduced customers’ disposable income. Despite these challenges, the group said business had improved in the second half of the year and that the new investment in new machines and renovations will attract more customers and improve customer experience.