Investors dump Louis XIII shares after HK$3b fundraising plan

Louis XIII Holdings shares fell 8.16 per cent yesterday after the company announced it was seeking to raise up to HK$3.03 billion through shares and convertible bonds to finance a casino resort it is building in Macau.

The Macau gaming company, headed by Stephen Hung, announced after the market closed on Thursday that it had reached an agreement with financial firm CLSA to raise as much as HK$1.56 billion by issuing up to 520 million new shares or convertible bonds, or a combination of both.

The new shares would be priced at HK$3 to HK$4 each and the bonds convertible at the same price.

An option would allow the company to issue a further 260 million new shares or convertible bonds, or a combination of both, to raise an additional HK$780 million.

Shares in Louis XIII closed at HK$3.60 yesterday. They have fallen 65.6 per cent since reaching a high of HK$10.48 on January 14.

The company said it also planned an open offer for existing shareholders to buy new shares that would take the total proceeds raised to no more than HK$3.03 billion.