SEC OKs Discovery’s amended IPO plan

The Securities and Exchange Commission has approved the revised initial public offering plan mapped out by Boracay resort developer Discovery World Corp. (DWC) under a smaller size of about P551 million.

DWC received an official notice from the SEC on Friday clearing amendments to its registration statement in relation to a public offering, which was originally set for August but deferred due to volatile market conditions.

Subject to the Philippine Stock Exchange’s approval, DWC plans to conduct the IPO and listing this November.

Among the amendments was a reduction in the number of primary offer shares to 168 million common shares from the original size of 306 million, thus slashing the maximum offer size from the previous goal of P1 billion. However, the maximum price per share was kept at P3.28 per share.

There were likewise changes in the use of proceeds. For instance, DWC factored in a recent opportunity to acquire Club Paradise in Coron, Palawan and decided to delay the development works for a proposed resort in San Vicente Palawan to dedicate its resources for the acquisition and refurbishment of Club Paradise, which caters to both local and foreign tourists who are in the same upscale market segment that Discovery Shores Boracay serves.

In a letter to DWC dated Oct. 18, the SEC’s market and securities regulation department said the registration statement covering a total of 626 million common shares with par value of P1 per share had been “favorably considered” by the Commission.

DWC now only has to submit the final and updated prospectus, the final and signed underwriting agreement and custodian agreement to obtain the certificate of permit to sell securities, based on the letter.

The company had obtained approval from both the SEC and Philippine Stock Exchange to pursue its stock debut. After this, the PSE still has to approve the new timetable for its offering.

Based on DWC’s revised preliminary prospectus, a portion of the IPO proceeds previously earmarked for repayment of bank debt for “proof of payment” of P125 million will be used to retire bank debt for “purchase of property,” in light of an opportunity to acquire Euro-Pacific Resorts Inc. (Euro-Pacific), owner and operator of Club Paradise Resort in Dimakya Island, Coron, Palawan. Doris C. Dumlao