Hong Kong-listed property developer Landing International Development Ltd is eyeing to implement a capital reorganization to pay off debts and to use as capital for any future investment opportunities.

In its latest regulatory filing, Landing International estimated the net proceeds to be approximately not less than HKD5.07 billion (US$653.7 million).

“The crediting of the amount of HK$1,850,929,133.13 arising from the Capital Reduction to the contributed surplus account of the Company will facilitate the payment of dividends as and when the Directors consider it appropriate in the future,” Landing International said. “The lower par value of the Shares will also allow the Company greater flexibility in setting the issue price for future equity fund raising exercises.”

The company clarified that the capital reorganization is conditional and upon the approval of the shareholders. It also assured investors that the capital reorganization “will not, of itself, alter the underlying assets, business operations, management or financial position of the Company and its subsidiaries except for the payment of related expenses.