MELCO INT'L DEV (00200) plans to issue new shares at a significant discount based on a "2 shares for 1" offering ratio.

MELCO INT'L DEV (00200) announced that the company proposes to issue 1 share for every 2 existing shares held at a subscription price of HK$1.0286 per share on the record date. The company plans to raise up to approximately HK$780 million by issuing a maximum of 758,341,877 new shares (assuming no change in the total number of shares issued on or before the record date), or up to approximately HK$781 million by issuing a maximum of 759,350,377 new shares (assuming no change in the total number of shares issued on or before the record date but new shares are issued due to the exercise of subscription rights). Assuming full subscription for the rights issue, the net proceeds (after deducting expenses) are estimated to be approximately HK$771 million (assuming no change in the total number of shares issued on or before the record date) or approximately HK$772 million (assuming new shares are issued due to the exercise of subscription rights but no change in the total number of shares issued on or before the record date). The net proceeds of the rights issue will mainly be used to repay a portion of the outstanding principal of the credit financing in 2021 and to pay interest on the credit financing in 2021.