Cityneon places out 40 million shares

MAINBOARD-LISTED Cityneon Holdings on Wednesday announced that it has placed out 40 million shares, comprising 20 million new shares and 20 million vendor shares, at S$0.55 per share.

The new shares will be placed out to strategic investor CMC Holdings as well as other institutional investors.

This is part of Cityneon's efforts to institutionalise its investor base and increase liquidity.

Net proceeds from the placement will go towards boosting the growth and expansion plans of Cityneon's wholly-owned subsidiary, Victory Hill Exhibitions (VHE).

Cityneon has stated that VHE is planning to launch new immersive attractions in China, which it views as a key market in Asia.

Ron Tan, executive director of Cityneon as well as CEO & president of VHE, commented that CMC's investment "reflects the strategic importance of China to the group's growth".

"We see China as a very exciting growth market for our immersive attractions, which have to date been well received worldwide," he added.

CMC's investment in Cityneon is expected to enhance collaboration opportunities between the two.

CMC is a prominent media and entertainment investment and operating platform in China. Its high-profile portfolio of investments includes IMAX China and Star China. It is also the majority joint venture partner of Dreamworks Animation in Oriental Dreamworks.

The completion of the placement is subject to Singapore Exchange's approval for the listing and quotation of the new shares.