Macau based casino and hotel operator Macau Legend Development Ltd has announced plans to raise up to HK$93 million ($11.9 million) through a rights issue as the company faces continued financial pressure from heavy losses and limited cash flow. The fundraising effort is aimed at stabilising the company’s liquidity and meeting immediate operational costs, including trade payments, taxes and interest obligations.
Details of the rights issue
According to a filing with the Hong Kong Stock Exchange, Macau Legend will issue one rights share for every two existing shares at HK$0.30 ($0.038) per share. The issue price represents a discount of around 45 percent to the company’s last closing price.
The offer is fully underwritten by East Asia Securities Company Limited and Platinum Broking Limited. Once completed, the company’s total number of shares will increase by about 50 percent to 930 million.
After deducting expenses, Macau Legend expects to raise net proceeds of approximately HK$86.9 million ($11.1 million). The funds will be directed primarily towards general working capital, including payments for trade liabilities, property taxes and interest expenses.
Support from major shareholders
The company said that its largest shareholders, including chairman Chan Weng Lin’s Perfect Achiever Group and Elite Success, have committed to take up their full entitlements under the rights issue. Their participation is expected to provide stability and investor confidence as the firm moves to strengthen its financial position.
However, Macau Legend also cautioned that the rights issue remains subject to regulatory approvals and underwriting conditions. The fundraising may not proceed if these requirements are not met.
Financial struggles continue
The capital raising comes amid a period of sustained financial difficulty for Macau Legend. The company reported a net loss of HK$1.42 billion ($182 million) for the first half of 2025, widening significantly from the HK$622 million ($80 million) loss recorded in 2024.
The losses reflect ongoing challenges in Macau’s gaming and hospitality sector, which has faced slower-than-expected recovery following the pandemic and increasing operational costs. Macau Legend cited weak tourist spending and high debt levels as factors weighing on its performance.
Operations and outlook
Macau Legend operates the Legend Palace Casino under a services agreement with SJM Holdings Ltd and manages the Macau Fisherman’s Wharf complex, which includes hotels, restaurants and entertainment venues. The company also owns assets in Laos, including the Savan Legend Hotel and Casino.
Despite its wide portfolio, Macau Legend continues to face cash flow constraints. The rights issue is seen as a short-term measure to address its working capital needs while it explores longer-term restructuring options.
The company stated that it will continue focusing on improving operational efficiency and cost control. Management also aims to enhance visitor traffic to the Fisherman’s Wharf complex and strengthen its collaboration with SJM Holdings to improve gaming performance.
Cape Verde ultimatum issued
Cape Verde’s government has recently issued a final ultimatum to Macau Legend, warning the company that failure to submit a revised plan of the long-delayed hotel and casino project in the capital city of Praia could result in the loss of its development rights.
The warning was delivered by the Minister of Internal Affairs, Paulo Rocha, who announced that Macau Legend has been granted 60 days to present an alternative proposal for the unfinished project. However, he admitted uncertainty about when the countdown began. If no proposal is submitted within the timeframe, the government has already finalised a reversion process and will open the site to new investors.
The stalled development covers an area of approximately 160,000 square meters and includes land on both Santa Maria Islet and the Gamboa seafront, prime coastal locations in the heart of Praia. Once seen as a flagship project to boost tourism and economic growth in Cape Verde, the site has remained inactive for several years, prompting the government to take firm action.
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