Manila Resorts World operator defers IPOBy Doris C. Dumlao |Philippine Daily Inquirer
MANILA, Philippines—Resorts World Manila operator Travellers International Hotel Group Inc. has been given approval by the Philippine Stock Exchange to pursue an initial public offering worth as much as P42 billion but this capital-raising exercise has been put on hold in light of volatile global market conditions.
In a memorandum dated July 8, the PSE said its board had approved the gaming firm’s IPO application alongside subsequent revisions to the terms of offering. But given current market conditions, the PSE reported that Travellers has decided to postpone the offering.
In the last few weeks, big global funds have been dumping assets in emerging markets in anticipation of the tapering of the US Federal Reserve’s liquidity-inducing bond buyback activities.
The public debut of Travellers was originally targeted for the third quarter of 2013, according to previous reports.
Travellers, a partnership between the Alliance Global Group led by property tycoon Andrew Tan and the Genting group of Malaysia, told the PSE it would make the proper announcement “when the company decides to resume its IPO as soon as more favorable market conditions occur.”
The PSE said its board had noted the revised terms and conditions of the offering.
Travellers plans to offer to the public up to 1.573 billion new common shares for as much as P23.38 per share, suggesting a base offer of about P36.78 billion. Including an overallotment option of 235.98 million shares, the offering can increase by P5.52 billion to P42.3 billion based on the maximum price.
Including the overallotment option, this will bring to public hands about 13 percent of Travellers’ total outstanding shares, which will amount to 14.159 billion shares after the IPO. However, Travellers has 10.84 billion treasury-held shares which the company would also list on the PSE.
Travellers has tapped five international houses to arrange the IPO: UBS, BoFA Merrill Lynch, CIMB, Maybank ATR Kim Eng and Religare Capital.
Travellers’ Resorts World Manila, the first integrated leisure and resort property in the Philippines that combines privately operated gaming facilities with hotel, retail, dining, entertainment and other leisure amenities.
After Resorts World Manila in Newport City, Travellers will next work on its new entertainment hub, the $1.1-billion Resorts World Bayshore in Pagcor City, the country’s future Las Vegas-like gaming and entertainment strip.