Shin Hwa World confirms capital reorganisation and rights issue

The company has announced its capital reorganisation will become effective on June 17.

South Korea.- Shin Hwa World Limited, the former Landing International Development, has announced that its capital reorganisation will take effect following approval from shareholders at a special general meeting on Thursday (June 13). The adjusted shares will begin trading on the Hong Kong Stock Exchange starting at 9am on Monday, June 17.

Shareholders have also given the green light to the company’s proposed rights issue, which aims to raise approximately HK$309.3m (US$39.5m).

The capital reorganisation had been announced in April. The company will consolidate every ten shares worth HK$0.01 into one share worth HK$0.10. The company expects to generate a surplus of HK$45.6m based on approximately 5.07bn existing shares. The rights issue will offer two rights shares for every one adjusted share at a subscription price of HK$0.26 per rights share. 

Approximately HK$73m will be used for the development of the Resort Business and Gaming Business of the Group such as service enhancement, supply chain management, human resources development as well as 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.