New Silkroad to raise US$189 million

The company announced its plans to raise a minimum of US$189 to raise funds for tourism and gaming on Jeju Islands.

Hong Kong.- According to a filing to the Hong Kong Stock Exchange, the company is planning to issue between 916 and 976 million offer shares based on two offer shares for every five existing shares, at the subscription price of US$20 per offer.

The proposal is subject to shareholders’ approval at the company’s special general meeting. New Silkroad Culturaltainment Limited said in a statement that the Open Offer will provide capital for the development of New Silkroad’s cultural tourism and gaming projects in Jeju Island.

“It will also help to reduce the Company’s financing cost 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,” said the company.

The executive director of New Silkroad, Paul Ng, said that through Open Offer, they hope to provide all shareholders with an equal opportunity to participate in the long term development of the company.

“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,” he added.