Leaked investment plan reveals Club BBoss intends to sell half its shares to raise HK$100 million

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25th April 2024 – (Hong Kong) The once-iconic Club BBoss (Big Boss), located at the New Mandarin Plaza in Tsim Sha Tsui East, is set to make a grand return. The revival comes with a significant twist—plans are underway to raise HK$100 million by offering up to 50% of the company’s equity. This initiative marks a pivotal moment in the city’s entertainment landscape, aiming to blend nostalgia with modern luxury.

Club BBoss, ceased operations in 2012, leading to a noticeable dip in local footfall and allure. Earlier this year, a consortium took over the lease of the former nightclub’s premises for a staggering monthly rent of HK$1.4 million, sparking widespread speculation about the future of this legendary venue.

According to the investment proposal leaked recently, the valuation of the company stands at a whopping HK$200 million. The plan outlines an ambitious strategy to appoint board members based on investment tiers, starting from HK$15 million for a director to HK$1 million for an assistant director position. Furthermore, the proposal highlights a revenue-sharing model, promising up to 15% in sales commissions to shareholders who contribute to client acquisitions.

With an expected opening date of 12th October, 2024—coincidentally the same day the club first opened its doors in 1984—the project aims to bring back the grandeur of the past while adapting to contemporary entertainment demands. The reimagined Club BBoss is set to feature a high-end karaoke bar, private suites, and state-of-the-art performance areas, covering over 50,000 square feet.

The detailed financial projections within the investment document are optimistic. The club anticipates a modest profit of HK$752,000 in its first year, escalating to an impressive HK$40.305 million by the following year, and reaching up to HK$124 million by 2026. With a planned public listing by 2028 or 2029, the investment scheme also promises bi-annual dividends at a rate of 30% or as decided by the board.

Edwin Lee Kan-hing, founder of Bridgeway Prime Shop Fund Management, commented on the significant lease amount, indicating strong confidence in Hong Kong’s economic revival, particularly in the luxury retail and entertainment sectors. “The fact that the new tenant is willing to pay a higher rent than the previous occupants signals a bullish outlook for Hong Kong’s future,” Lee stated.