Chinese gaming conglomerate Ourgame is aiming to raise HK$416 million through the issuing of subscription shares, which it says will be used to further advance its World Poker Tour and eSports interests and expansion of its Chinese online gaming portfolio.
In a filing to the Hong Kong Stock Exchange, the company named three subscribers for the subscription shares, which will total 225,231,388 shares comprising 28.61% of Ourgame’s issued shared capital. They include Total Victory Global Limited, a company owned by executive directors of Ourgame named as Mr Yang and Mr Ng, which will be issued 89,189,189 shares worth 11.33% of issued shared capital. Noumena Innovations (BVI) Ltd will be issued 71,351,351 shares worth 9.07% with Irena Group Co Ltd to be issued 64,690,848 worth 8.22%.
The breakdown of expenditure of the raised funds will include 30% to be used to further develop its eSports business, 30% to acquire and develop China regional card and board games platforms to enlarge the group’s China national games platform, 15% to further develop the World Poker Tour including its WPT online games platform and 15% to revamp and update the group’s China mobile product portfolio. The remaining 10% will be used to replenish Ourgame’s working capital.
In its filing, Ourgame said the offering represents “a good opportunity to (i) raise a substantial amount of additional funds for the company; (ii) improve the financial positions and liquidity of the group; and (iii) provide the company with the financial flexibility necessary for the group’s business development and expansion.
Net proceeds are expected to be HK$416.7 million with a net subscription price per subscription share of HK$1.85.
