Rights issue means Yang Zhihui is no longer Shin Hwa World’s largest shareholder

The former chairman now owns less than 10 per cent of the company.

Hong Kong.- The stake of Yang Zhihui, the former chairman and executive director of Shin Hwa World Limited has been diluted to 9.74 per cent following a rights issue. Public shareholders’ ownership has been diluted from 36.16 per cent to 26.45 per cent.

The company said the rights issue generated net proceeds of HK$258.6m (US$33.1m). It was conducted on a basis of two rights shares for every one adjusted share, priced at HK$0.26 per rights share. The 1,014,300,462 rights shares offered were fully subscribed, resulting in an increase in the number of adjusted shares to 1,521,450,693. Landing International, fully owned by Yang Zhihui, now holds 9.74 per cent of Shin Hwa World’s issued shares, a reduction from 29.21 per cent.

The company’s largest substantial shareholders are now Pauline Lam and Zhang Tingting, holding 17.96 per cent and 16.67 per cent, respectively. The underwriter and the 16 subscribers procured by the underwriter now collectively hold a 29.18 per cent stake.

Shin Hwa World had previously stated that approximately HK$73m of the proceeds from the rights issue would be used for the development of the group’s resort and gaming businesses, including in service enhancement, supply chain management, human resources and sales and marketing activities, while HK$50m will be used for interest expenses and HK$35.6m for general working capital.

In March, the company raised HK$28.74m (US$3.67m) through a share subscription agreement. It issued 845.25 million subscription shares at HK$0.034 per share.