Bright Smart Securities to raise HK$562m in rights offering

PUBLISHED : Thursday, 04 September, 2014, 9:42am
UPDATED : Thursday, 04 September, 2014, 9:42am

Bright Smart Securities and Commodities Group has proposed raising up to HK$562.4 million in a rights offering, it said in a filing with the Hong Kong stock exchange on Thursday.

The local broker, controlled by Peter Yip Mow-lum, the chairman and largest shareholder of both Bright Smart and club operator Magnum Entertainment, said it would issue one new share for every two existing ones at HK$1 apiece. The offer price represents a discount of 27.5 per cent to Wednesday’s closing price of HK$1.38.

The proceeds would be used to expand its margin financing capacity, it said.

The company will issue up to 562.4 million rights shares, representing 50 per cent of the existing number of shares.

The Securities and Futures Commission in July fined Bright Smart Securities International HK$700,000 and reprimanded it for running an advertisement with misleading information in four newspapers and on its own website last year. The advertisement gave the false impression that its gold business was regulated by the commission.