Investment surges: Star Plus, afflicted with Jay Chou ties, collects $43 million through share sale
Star Plus Legend Group, a Hong Kong-based retail and entertainment company, has announced a successful fundraising round, raising HK$340 million (approximately $43 million) through the placement of 37.52 million new shares at a price of HK$9.13 each. This represents about 4.18% of the company's enlarged share capital.
The fundraising round was strategically timed following the launch of Jay Chou's account on Douyin, a popular Chinese social media platform. Chou, controlled by the mother of Star Plus Legend Group, joined Douyin, which led to a strong rally that nearly doubled Star Plus' stock price and pushed its market value above HK$10 billion.
Management capitalized on this momentum to conduct the fundraising, despite a nearly 20% discount to the previous close. The new shares will be sold at HK$9.13 apiece, a price that is more than double the price of Star Plus' stock before the Douyin rally.
The funds raised will be used for various purposes, including expanding the retail network, developing physical stores, promoting intellectual properties (IPs), entertainment and sports venue investments, branded exhibitions, and general working capital.
This move suggests that Star Plus is leveraging the positive public attention from Jay Chou’s Douyin presence to strengthen and expand its core retail and entertainment business lines, enhance brand exposure through IP promotion, and invest in venue-related growth opportunities.
On the stock market, shares of Star Plus opened down on Monday but later reversed course and finished up 2.6% for the day at HK$11.70.
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[1] Source: Star Plus Legend Group Ltd. press release, 2022.
- Star Plus Legend Group, having capitalized on the momentum generated from Jay Chou's Douyin presence, is utilizing the funds raised from the strategic fundraising round for expanding its retail network, developing physical stores, promoting intellectual properties, making investments in entertainment and sports venues, organizing branded exhibitions, and enhancing general working capital, thereby aiming to strengthen and expand its core business lines in finance and investing within the retail and entertainment sector.
- Given the successful fundraising round, Star Plus Legend Group is demonstrating its commitment to investing in growth opportunities, such as venue-related developments and intellectual property promotion, with the ultimate goal of enhancing its brand exposure and penetrating further into the competitive business landscape.
