Travellers IPO set at P11.28 apiece

MANILA, Philippines – Gaming operator Travellers International Hotel Group Inc has placed its final offer price at P11.28 per share.

In a letter to the Philippine Stock Exchange on Thursday, October 17, Travellers said its initial public offering price (IPO) would be at P11.28 per share, along the midpoint of an indicative share price range of P10.65  to P11.88, following its underwriters’ recommendation. 

Proceeds and share price are down by more than half compared to what the firm earlier announced in May: P23.38 apiece to raise P42 billion.

It deferred its IPO in July citing global market volatility and revived it in September. It could have been one of the biggest share sales in 2013.

The final offer price is equivalent to 11 to 13 times the firm’s price-to-earnings ratio based on projected 2014 earnings, according to sources.

Travellers is expecting P20.3 billion from the maiden sale of 1.8 billion shares, 1.572 billion of which are primary common shares and 235.983 million are overallotment shares.

Stock allotted for domestic investors is at 70% or 1.101 billion shares while the remaining 30% or 471.966 million shares will go to foreign investors. The latter may be increased depending on the demand.

The share sale period will be from October 22 to 29 with the listing date set on November 5.

International lead managers are Merrill Lynch, CIMB, Maybank-ATR Kim Eng Securities, Religare Capital
Markets and UBS while co-lead international managers are CLSA Ltd, Credit Suisse and Morgan Stanley.

Travellers tapped BDO Capital & Investments Corp and Maybank ATR-Kim Eng Securities as domestic underwriters.

Proceeds are intended for partially financing the expansion of its integrated tourism hub, Resorts World Manila, and repayment of debts.

Travellers is a joint venture between luxury lifestyle and entertainment bar-raisers Alliance Global Group Inc, owned by tycoon Andrew Tan, and Genting Hong Kong Ltd. – Rappler.com