Travellers sets price guidance for public offering

Resorts World Manila operator Travellers International Hotel Group Inc. is looking at a price guidance for its upcoming initial public offering at a range that will raise $458 million to $497 million in fresh fund for expansion.

The gaming firm, a partnership between tycoon Andrew Tan-led Alliance Global Group Inc. and Malaysia’s Genting group, has set an indicative price range of P10.65 and P11.88 per share, sources privy to the offering said Tuesday. “This might change because of foreign exchange rates,” a source said.

The international managers were scheduled to use the foreign exchange rate as of Tuesday to determine the price range.

This indicative price range brings the company’s offer size to P19.17 to P21.38 billion, including the overallotment option or the additional shares that the stabilizing agent can take up in case of strong demand. Without the overallotment option, the base offer will be P16.75 to P18.7 billion ($389 to $435 million).

The gaming firm will offer to the public up to 1.573 billion new common shares with an overallotment option of 235.98 million shares. Travellers plans to sell up to 70 percent of the shares to the foreign market and 30 percent to the domestic market but the allocation may be adjusted depending on demand.

The joint global coordinators, international bookrunners and international lead managers are BofA Merrill Lynch, CIMB, Maybank Kim Eng, Regilare Investment Banking and Securities and UBS. The international co-bookrunners are CLSA, Credit Suisse and Morgan Stanley.

The domestic underwriters are BDO Capital, Maybank ATR Kim Eng and UBS. The company has authorized UBS to be the stabilizing agent, giving the latter the option to purchase the overallotment shares within 30 days from listing date.