Troubled Macau Legend Development Ltd said Thursday it had successfully raised HK$86.4 million (US$11.1 million) after expenses via a rights issue, despite less than half of the shareholder rights on offer being subscribed for by shareholders.
In a filing, the company revealed that the 1-for-2 rights issue, under which it offered 310.1 million new shares, saw around 153.4 million shares subscribed for, representing 49.5% of the total offer. This included 98.9 million shares taken up through normal entitlements and 54.5 million shares through excess applications.
While around 156.6 million shares representing 50.5% of the offer were left unsubscribed, co-underwriters East Asia Securities and Platinum Broking took up the remaining shares as per the underwriting agreement, leaving them with 16.8% of the company’s enlarged share capital.
Macau Legend added that, as a result, it had raised gross proceeds of HK$93.0 million (US$11.9 million) and net proceeds of HK$86.4 million after expenses. The funds are planned to be used to pay down some existing debt.
The rights issue has seen Macau Legend’s total issued shares increase from about 620.1 million to 930.2 million shares, with trading of the new shares to commence next Monday 26 January.
Notably, the issuance of new shares has seen the shareholding of Levo Chan, the former CEO of leading Macau junket Tak Chun Group, drop from 33.08% to 22.06%. Chan, who was in 2023 sentenced to 14 years in a Macau jail for illegal gambling, substantial fraud and aggravated money laundering, invested in Macau Legend in 2020 – shortly before the government’s crackdown on the local junket industry.
According to Thursday’s filing, Macau Legend’s CEO, Li Chu Kwan, maintained his shareholding of 1.76%, and his family vehicle Elite Success its holding of 25.8%, after taking part in the rights issue. Li is the son of Macau powerbroker Li Chi Keung, who long held close ties to junket operator Golden Group and the Macau Jockey Club.
Macau Legend last year detailed multiple uncertainties relating to its ability to continue as a going concern after reported a loss of HK$1.42 billion (US$182 million) in the six months to 30 June 2025.
The loss was primarily due to an impairment loss of HK$1.27 billion (US$163 million) related to its Macau property, with Legend Palace being one of the satellite casinos impacted by the closure of the city’s satellite business. Legend Palace officially ceased gaming operations on 12 November 2025.
