Company: MEGL
Filing Date: 2025-06-27
Form Type: F-1/A
Source: 0001641172-25-016831
Chunk: 82

Company: Magic Empire Global Ltd
Filing Date: 2025-06-27
Form: F-1/A
Chunk 82
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 minimum offering amount required as a condition to closing this offering, we may sell fewer than all or none of the securities offered hereby.

| 45 |

<div align='center'>DILUTION</div>

If you invest in our Class A ordinary shares in this offering, your interest will be immediately diluted to the extent of the difference between the public offering price per Class A ordinary share in this offering and the net tangible book value per ordinary share after this offering. Because our Class A ordinary shares and Class B ordinary shares have the same dividend and other rights, except for voting and conversion rights, the dilution is presented based on all issued and outstanding ordinary shares, including Class A ordinary shares and Class B ordinary shares. Dilution results from the fact that the public offering price per Class A ordinary share is substantially in excess of the net tangible book value per ordinary share. As of December 31, 2024, we had a historical net tangible book value of $16,137,311, or $3.19 per ordinary share. Our net tangible book value per ordinary share represents total net assets less intangible asset (right-of-use assets), all divided by the number of ordinary shares outstanding as of December 31, 2024, giving effect to the (i) re-designation of Class A ordinary shares and Class B ordinary shares effectuated on December 5, 2024; and (ii) share combination at a ratio of 4-to-1 effectuated on February 6, 2025.

After giving effect to the sale of up to 15,000,000 Class A ordinary shares in this offering at the fixed public offering price of US$[0.54] per Class A ordinary share, and after deducting the Placement Agent’s commissions, non-accountable expense allowance and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value at December 31, 2024 would have been $[23,656,854] or $[1.18] per ordinary share. This represents an immediate decrease in pro forma as adjusted net tangible book value of $[2.01] per ordinary share to existing investors and immediate increase in net tangible book value of $[0.64] per ordinary share to new investors. The following table illustrates this dilution to new investors purchasing ordinary shares in this offering:

|                                                                |     | Per ordinary share 
 post- Offering(1)  |        |    |
|:---------------------------------------------------------------|:----|:-------------------|-------:|