Night-club operator Magnum Entertainment Group Holdings (02080.HK) may go private and delist from the stock exchange as controlling shareholder and chairman Yip Mow-lum mulls sale of his stake, the Hong Kong Economic Journal reported.
Magnum said in a stock-exchange filing that its controlling shareholder is in preliminary talks with some interested parties over a potential stake transaction.
Magnum listed on the Hong Kong bourse only a year ago. The stock made its debut on Jan. 23, 2014 after a hugely successful initial public offering. The IPO drew 3,558 times over-subscription, beating a previous record held by Milan Station Holdings (01150.HK), whose shares were over-subscribed 2,178 times when it went public in May 2011.
Following the listing, Magnum announced that it swung to a loss of HK$600,000 for the year ended March 2014, from a profit in the previous year, as revenue fell 8.5 percent to HK$159 million.
Magnum shares surged 89 percent on their debut in January last year from their offer price of HK$1.50, but they are now hovering at around HK$1.15.
Chairman Yip said he has too many projects on hand and that he will consider selling Magnum to someone who shows interest.
He said his plan to spin off the financial channel of his brokerage firm Bright Smart Securities will remain on track.
Translation by Vey Wong
–Contact us at [email protected]