STARPLUS LEGEND (06683) disclosed on November 13 that it entered into a placement and subscription agreement to sell up to 75 million shares at HK$7.20 per share, including a top-up placement of 54.5 million new shares. Assuming full placement, the proceeds will total HK$392 million (net: HK$369 million), representing approximately 8.36% of the current issued shares and 7.88% post-subscription.
The net proceeds will be allocated as follows: - **67.7% (HK$250 million)**: Funding concerts and exhibitions featuring international artists. - **16.25% (HK$60 million)**: Developing exclusive celebrity IPs and content, including partnerships with globally influential new IPs. - **6.05% (HK$22 million)**: R&D and procurement for F&B products. - **9.99% (HK$37 million)**: General working capital and corporate purposes.
**Expanding Global IP Ecosystem** The largest allocation underscores STARPLUS LEGEND’s focus on global IP strategy. On November 3, the company announced acquiring up to 7% of Galaxy, a South Korean agency representing stars like G-Dragon and Kim Jong-kook, to co-organize global tours, exhibitions, and IP derivatives.
Additionally, STARPLUS LEGEND is advancing "IP+ robotics+AI" integration. On November 12, its subsidiary formed a 50/50 joint venture with Unitree Robotics to develop consumer IP robots (including quadruped pets) and humanoid performer robots, building on their July strategic partnership. Their debut product, "STARDOG," has secured over RMB100 million in orders from Adata and Cloud Factory, validating its IP commercialization.
**Capital Moves Fueling Growth** This marks the company’s second major capital operation in six months. In August, it raised HK$324 million (net) via a top-up placement at HK$9.13 per share to expand IP-driven products like vending machines and robotic dogs.
Recent initiatives include: - Launching the "100 International Artists Co-Creation Project" to enhance original IPs like "Mr. Chou." - Partnering with Shanghai Museum for an art show, making "Mr. Chou" the first celebrity IP featured in a national museum. - Acquiring 1.17% of Beijing National Stadium ("Bird’s Nest") to create an "IP-scene synergy" model. - Introducing new IP WAKAEMO to diversify its portfolio.
The board views this placement as strategic to optimize capital structure and accelerate its vision as a "global IP development platform." Analysts highlight STARPLUS LEGEND’s shift from "IP operator" to "happiness experience ecosystem builder," with UOB Kay Hian raising its target price to HK$17.50 ("Buy"). Zhongtai Securities and Kaiyuan Securities also endorse its high-growth potential with "Add" and "Buy" ratings.