Discovery World defers P1-B public offering
MANILA, Philippines – Discovery World Corp., developer of upscale beachfront resort Discovery Shores Boracay, has deferred its P1-billion initial public offering (IPO), which was originally set for August.
DWC wrote to the Philippine Stock Exchange to request the postponement of the IPO to a later date, citing “certain forthcoming events” that might have a material positive impact on the company, its business and future prospects.
“We have decided to await these developments prior to undertaking our IPO to give prospective investors a better basis in making an investment decision relative to our share offering,” DWC said in a letter posted by the PSE on Friday.
Based on the earlier terms approved by the PSE, Discovery World’s IPO was originally set to run from Aug. 12 to 19 while listing on the main board of the local bourse was slated for Aug. 29.
Discovery World will sell 306 million new common shares at P3.28 per share, bringing 40 percent of its stocks under public ownership. It will have a market capitalization of P2.5 billion after the IPO.
Abacus Capital & Investment Corp. was tapped as issue manager and underwriter for the offering.
The company plans to use the proceeds of the offering for investment in new businesses (P575 million), retirement of debt (P325 million) and working capital (P55.19 million). All these expenditures are set for the third or fourth quarter of this year.
For new business ventures, the company is considering acquiring 20 percent of hotel and restaurant management school Enderun Colleges and 100 percent of cruise operator Discovery Fleet Corp. It also intends to buy into Palawan Cove Corp. , which owns beachfront properties in San Vicente, Palawan.
Discovery Fleet currently operates one cruise boat with about 50 rooms, offering diving and non-diving programs. For divers, it packages cruises to Tubbataha Reef, with Cagayancillo and Calusa as add-on options. For non-divers, it offers cruises to Pandan Island, Coron and Apo Reef.
Palawan Cove is still under construction and is expected to start operations by the second quarter of 2016. Doris C. Dumlao
