RWM’s Travellers prices IPO at P11.28 per share

Travellers International Hotel Group Inc., operator of Resorts World Manila (in photo). INQUIRER FILE PHOTO

MANILA, Philippines — Resorts World Manila operator Travellers International Hotel Group Inc. has priced its initial public offering at P11.28 per share, the middle of the indicative range, bringing the size of its stock debut at $473 million.

Lauro Baja, managing director of investment bank UBS Philippines, said this IPO pricing would allow Travellers – an integrated gaming and entertainment partnership between tycoon Andrew Tan-led Alliance Global Group Inc. and the Genting group – to achieve a market capitalization of $4.2 billion.

“The international tranche was five times oversubscribed with over 100 investors,” Baja said early Thursday in a text message from London, the last leg of the international roadshow.

Although there was demand at the top, Travellers decided to price at the midpoint to ensure aftermarket support,” he said.

Travellers earlier set an indicative price range of between P10.65 and P11.88 per share for this offering.

By investor type, Baja said 60 percent of those attracted by Travellers were “long-term”  investors and sovereign wealth funds while while remainder was split between hedge funds and private banks. By geographical distribution: 70 percent of international subscribers came from Asia, 20 percent from Europe and 10 percent from the US.

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.

In peso terms, the IPO will generate about P20.4 billion ($473 million) including the overallotment option.

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 lead 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.

Travellers’ public offering will run from October 22 to 29 while the listing date on the Philippine Stock Exchange under the stock symbol “RWM” is expected by November 5.