Landing International Development Ltd has completed issuing HK$138.8 million (US$17.9 million) new subscription shares as part of a plan to raise funds and improve access to new high-end gaming customers.
The 704,374,800 new shares, subscribed to by an investment holding firm called Wealth Millennium Limited and which lists Chinese national Pauline Lam as its guarantor, represent 20% of Landing’s issued share capital before issue and 16.67% upon completion.
According to Landing, Lam is an executive director of Hong Kong-listed companies China Overseas Nuoxin International Holdings Limited and Hang Tai Yue Group Holdings Limited, and possesses connections to customers of aircraft charter services for private jets in the high-end aviation market.
“The Board believes that the Subscription will allow the Group to tap into the Guarantor’s connections in private jet charter customers and to source potential new high-end customers for the Group’s resort and gaming business in Jeju Island, South Korea and thereby creating synergies,” the company said.
Landing owns and operates Jeju Shinhwa World, including Landing Casino, on Jeju.
Proceeds from the subscription shares will include HK$91 million to be used for the preliminary development of a new hotel at Jeju Shinhwa World and HK$47.5 million on the renovation and upgrading of existing facilities.
Landing said the issue of new shares is a “more desirable financing option as compared with debt financing as it does not create any interest payment obligations which will have a negative impact on the gearing ratio of the Group.”
The new shareholding structure sees the interest of Landing International Ltd, a company wholly-owned by Chairman Yang Zhihui, fall from 42.07% to 35.06%, while public shareholding drops from 51.63% to 43.03% and that of Yao Jianhui from 6.30% to 5.25%.
The company recently reported a loss of HK$2.12 billion (US$272 million) in FY2020, largely impacted by reduced visitation as a result of the COVID-19 pandemic.