BRIEF: Riding high, Jay Chou-linked Star Plus raises $43 million in share placement
Star Plus Legend Group Ltd. (6683.HK), controlled by the mother of pop sensation Jay Chou, on Friday announced plans to raise HK$340 million ($43 million) through the placement of 37.52 million new shares at HK$9.13 apiece. Representing 4.18% of the company’s enlarged share capital, the price represented a nearly 20% discount from its previous Friday close of HK$11.40.
Star Plus will use HK$124 million of the proceeds to expand its retail network, HK$40.2 million to develop its physical stores, HK$60 million to promote its IPs, HK$22 million for entertainment and sports venue investments, and HK$45.6 million for branded exhibitions. The remainder will be used for general working capital.
The placement appears strategically timed, after Jay Chou recently opened an account on Douyin, China’s version of TikTok, touching off a rally that saw Star Plus’ stock nearly double. With its market value soaring above HK$10 billion, management seized on the momentum to conduct the new fundraising. Despite the nearly 20% discount, the placement price is still more than double the price of Star Plus’ stock before the Douyin rally.
Shares of Star Plus opened down on Monday, but later reversed course and finished up 2.6% for the day at HK$11.70.
By Lau Chi Hang
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