Travellers sets IPO floor price at P10.65
Travellers International Hotel Group, Inc., the gaming and leisure subsidiary of Alliance Global Group, Inc. (AGI), has set the minimum price of its planned initial public offering at P10.65 per share.
The firm had reduced its maximum initial public offering price to P11.88 per share or almost half of initial maximum price of P23.38 per share for a total offer size of up to P21.46 billion.
During the firm’s domestic roadshow, UBS managing director Lauro Baja said the firm will be conducting its international roadshow in Hong Kong, Singapore, London, New York, and Boston in 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 has been allotted for the international offering while 471.97 million shares will be sold to domestic investors.
The final offer price will be set on October 17, 2013 and 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.
Phase 2 and 3 will include the completion of a 4,000 seat convention center and function rooms with a capacity of 5,000 by 2014, the 200-room extension of Marriott hotel by 2015, and the opening of Hilton Sheraton hotel and the extension of the casino by 2016.
After this, Sian said they will undertake the fourth phase of the expansion program although they have yet to draw the plans for this phase. This will cover an area of 1.5 to 2 hectares.
Sian said Phase 4 may overlap with the completion of the first phase of Resorts World Bayshore integrated resort and casino complex in the Pagcor Entertainment City in 2017.
The firm has named CIMB Securities (Singapore) Pte. Ltd.; Maybank Kim Eng Securities (Singapore) Pte. Ltd.; Merrill Lynch (Singapore) Pte. Ltd.; Religare Capital Markets Hong Kong Limited; and UBS AG, Hong Kong Branch as the joint global coordinators, international bookrunners and lead managers.
It has also tapped CLSA Limited, Credit Suisse (Singapore) Limited, and Morgan Stanley & Co. International plc to be the joint international co-bookrunners.
Meanwhile BDO Capital & Investment Corporation, Maybank ATR Kim Eng Capital Partners, Inc., and UBS Investments Philippines, Inc. will be the domestic lead underwriters.