Travellers sets IPO at P11.28/share
Travellers International Hotel Group, Inc., the gaming and leisure subsidiary of Alliance Global Group, Inc. (AGI), has priced its initial public offering (IPO) at P11.28 per share to raise a total of $473 million.
Lauro Baja, managing director of co-lead issue manager UBS AG said this gives Travellers a market capitalization of $4.2 billion adding that the international tranche was 5 times oversubscribed with over 100 investors.
“Although there was demand at the top, Travellers decided to price at the midpoint to ensure aftermarket support,” Baja said. Travellers had earlier set a price range of P10.65 to P11.88 per share.
He said about 60 percent of the investors in the international offer are long-term investors and sovereign wealth funds while the remainder was split between hedge funds and private banks.
By geography, 70 percent of investors are from Asia, 20 percent from Europe, and 10 percent from the US.
In an offering memorandum, the Philippine Stock Exchange said Travellers is planning to sell 1.57 billion primary firm shares. The firm has also set aside 235.98 million shares as an over-allotment option.
About 70 percent of the IPO or 1.1 billion common shares had been allotted for the international offering while 471.97 million shares will be sold to domestic investors.
The domestic offer will run from October 22 to October 29, 2013. The shares will be listed and start trading at the PSE on November 5, 2013.
Travellers intends to use the proceeds of the primary offer for general corporate purposes, including financing capital and project expenditures for its Phase 2 and Phase 3 expansion plans as well as equipment leases and purchases.
The firm is spending about $600 million for the expansion of its Resorts World complex in Newport City.
AGI president Kingson Sian said they are already undertaking the second and third phases of Resorts World which will be completed by 2016. This will add 60 percent to their existing retail space and 1,100 hotel rooms to the current 1,226.