Macau Legend Raises HKD93m in Undersubscribed Rights Issue

Macau Legend Development Ltd has secured roughly HKD93.0 million (US$12.0 million) through a rights issue, according to a filing made with the Hong Kong Stock Exchange on Thursday. Shareholder participation, however, was limited, with just 49.49 percent of the offered rights shares subscribed. The balance was taken up by joint underwriters East Asia Securities Co Ltd and Platinum Broking Co Ltd.

The unsubscribed portion represents around 16.8 percent of the company’s enlarged share capital following completion of the exercise. The offer was structured on a one-for-two basis, covering a total of 310,059,356 new shares priced at HKD0.30 each. After accounting for fees and related expenses, Macau Legend expects net proceeds of approximately HKD86.4 million, which it plans to deploy as general working capital amid ongoing operational pressures.

Capital Injection to Support Balance Sheet

First announced in October last year, the rights issue was designed to strengthen Macau Legend’s financial position and improve liquidity flexibility. While the full HKD93.0 million target was reached, the uneven take-up highlights cautious sentiment among existing investors, with underwriters stepping in to ensure the transaction’s completion.

Management views the funding as timely, offering short-term relief as the group navigates a challenging operating environment shaped by regulatory changes and shifting market dynamics in Macau.

Regulatory Changes Impact Core Assets

Macau Legend has been directly affected by Macau’s policy shift on satellite casinos. Its Macau Fisherman’s Wharf complex, located near the Outer Harbour Ferry Terminal, previously hosted the Legend Palace Casino under a service agreement with SJM Holdings Ltd. Operations at the venue ended on November 12, 2025, following the government’s directive to phase out all satellite casinos by year-end.

The closure removed a key revenue stream, with Fisherman’s Wharf now operating solely as a non-gaming destination. The change underscores the regulatory adjustments reshaping the territory’s gaming landscape.

Overseas Exit Adds Financial Pressure

Further weighing on the group, the government of Cabo Verde recently finalized the takeover of Macau Legend’s unfinished casino resort project in Praia. The company had already written down the asset’s full value in its 2024 annual report, citing its lack of commercial viability.

Despite exiting the project, the financial impact remains visible. Macau Legend reported a net loss of nearly HKD1.42 billion in the first half of 2025, largely driven by a HKD1.27 billion impairment linked to satellite gaming assets.

Focus Shifts to Stability

With legacy operations scaled back and international ventures curtailed, Macau Legend now faces the task of carefully managing its remaining resources. While limited shareholder participation in the rights issue signals ongoing challenges, the fresh capital provides breathing room as the company seeks to stabilize operations and adapt to Macau’s evolving regulatory environment.