Louis XIII Holdings places shares at a discount

Sunday 21st of December 2014

Louis XIII Holdings placed a number of shares on Friday in order to help fund its Macau project. Chairman of Louis XIII, Stephen Hung’s dream is for a destination that caters to China’s top 1 percent of VIPs, with its most expensive suite priced at HK$1 million ($130,000) a night. The project is due to open some time in 2016, though Hung has yet to confirm which operator will allow him to piggy-back on their license.

Unfortunately, the placement coincided with a visit from China’s president Xi Jinping, who is cracking down on corruption, deterring displays of lavish spending.

The placement price was determined at HK$3.00 per share, which represents a discount of approximately 7.1 percent to the closing price of HK$3.23 quoted on the Stock Exchange on the last trading day immediately prior to the announcement.

294,233,500 placing shares and an aggregate principal amount of HK$755.3 million convertible bonds at face value have been conditionally placed, raising aggregate gross proceeds of approximately HK$1,638 million ($211.3 million).

The placing shares represent approximately 65.4 percent of the existing issued share capital of the company, and approximately 39.6 percent of the total issued share capital as enlarged by the placing shares.

Trading of shares in the company were suspended on Friday Dec. 19 in anticipation of the announcements, but an application has been made the Stock Exchange for the resumption of trading in the shares with effect from 9.00 a.m. on Monday, Dec. 22.