Rojam Entertainment to offer 90 mln shares for sale at 1.00 hkd/share

HONG KONG (AFX-ASIA) - Rojam Entertainment Holdings Ltd said it is offering 90 mln shares for placement at 1.00 hkd per share ahead of its listing on the GEM board.

Of the total shares to be offered, 70 mln shares will be new shares.

In a statement, the company said it will raise gross proceeds of about 70 mln hkd from the placement.

Of the proceeds, about 16 mln hkd will be used to recruit producers to strengthen its music production capacity and about 10 mln hkd is earmarked to buy hardware and software for its Tokyo studio.

Another 18 mln hkd will be used for sponsorship and promotional activities and 6 mln will be used to train and develop artistes in different Asian countries, set up an online and offline music learning centre and for 

general working capital.

Rojam is an integrated music production house, offering master tape recording and the planning and management of the entire production process.

In the nine months to December last year, the company recorded net profits of 17.1 mln hkd on a turnover of 94 mln hkd.

The company expects net profit for the year to March 2001 to be not less than 19 mln hkd.

The company said it plans to expand its business from Japan to other Asian markets, including Hong Kong, South Korea, Taiwan, Thailand and China.

Rojam is expected to list on May 31.

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