International Entertainment Corporation (IEC) has completed the first issuance under its HK$1.6bn DigiPlus convertible notes package, according to a filing with the Hong Kong Stock Exchange.
The first tranche, valued at HK$800m, was issued on March 3 after all conditions precedent in the subscription agreement were fulfilled. Under the agreement, a second tranche of HK$800m is expected to be completed within three months, unless extended by mutual consent.
Upon issuance of both tranches and after deduction of approximately HK$2m in expenses, IEC expects net proceeds of roughly HK$1.6bn. The company reiterated that the intended use of proceeds remains unchanged from the plans disclosed in its February 2026 circular.
IEC disclosed updated shareholding scenarios in connection with the notes. As of the announcement date, the company had 1.37bn shares outstanding. Excite Opportunity Fund L.P. held 19.0%, while Eriska Investment Fund Ltd held 9.6%. Public shareholders controlled 71.4%.
If the full HK$1.6bn in notes is converted at the initial conversion price, IEC’s share capital would increase to approximately 2.97bn shares. The subscriber would hold 1.6bn of those shares, representing a 53.9% majority stake.
The positions of existing shareholders would be diluted, with Excite Opportunity Fund's stake falling to 8.8%, Eriska Investment Fund to 4.4% and public shareholders to 32.9%.
IEC also confirmed that various parties including Excite Opportunity Fund L.P., Glorious Future Fund SPC and AG Investment Management are deemed to have interests in certain shareholdings under Hong Kong’s Securities and Futures Ordinance.
The company noted that further announcements will be made as required, including updates on the second completion of the subscription agreement.
Full conversion would expand IEC’s share base from 1.37bn to 2.97bn shares
