Genting's PH unit postpones IPO amid volatility
MANILA, Philippines – Travellers International Hotel Group Inc., the partnership behind Resorts World Manila, has postponed its P42-billion initial public offering slated for release this month citing unfavorable market conditions.
“In view of the current market conditions, the company decided to postpone the implementation of its IPO. We shall inform your good office when the company decides to resume its IPO as soon as more favorable market conditions occur,” Travellers said in a letter to the Philippine Stock Exchange on Monday, July 8.
Travellers, a joint venture between luxury lifestyle and entertainment bar-raisers Alliance Global Group Inc. and Genting Hong Kong Ltd., was originally set to sell shares under the first board of the PSE on July 19. This would have been one of the biggest share sales this 2013.
The current global market volatility has foreign funds flowing out of emerging markets, like the Philippines, into developed economies. The market has been turbulent, touching bear levels and bouncing back in recent sessions, as the US mulls rowing back on its multi-billion-dollar stimulus program.
In June, the Gokongwei group also announced it has decided to wait for the local stock market to stabilize before going ahead with the planned IPO of its retail arm.
Travellers' IPO was approved by the PSE board in a meeting on June 26. The pricing starts at up to P23.38 per share. The total shares when broken down amount to 1.572 billion shares in primary common shares and 235.983 million shares in overallotment shares exercisable within 30 days after the listing date.
Travellers enlisted the services of Merrill Lynch, CIMB, Maybank, Religare Capital Markets and UBS as underwriters.
The company said it intends theiInitial sale of the primary shares to partially finance the expansion of Resorts World Manila pegged at P24.7 billion and repayment of debts.
For Phase 2 of the expansion, Travellers is expanding Marriott Hotel and developing a grand ballroom and a convention center.
The company is developing a 10-story annex with 3,000-square meter space and adding 227 rooms to Marriott Hotel, to be completed in July with capital spending estimated at P7.28 billion.
It is also allocating 3,000 square meters for the grand ballroom and 2,000 seats for the convention center, both set to be finished in September 2014.
For Phase 3 of the expansion, the company plans to construct a gaming area with 7,995 square meters of space and two new hotels, Sheraton and Hilton Manila, which will add 912 rooms in Resorts World Manila. The completion of this P15.54-billion project is set in 2017.
Phases 2 and 3 of expansion will add 284 gaming tables, 1,708 slot machines, 1,708 electronic table games and 9,133 square meters of retail space.
Resorts Wold Bayshore
This year will also see the development of Travellers' second casino and resort project dubbed as Resorts World Bayshore in Entertainment City.
Bayshore Manila, which is thrice the size of Resorts World Manila, is the biggest casino project of the company with the Entertainment City of the Philippine Amusement and Gaming Corporation.
One of the biggest conglomerates of the Philippines, Andrew Tan-led Alliance Global has interests in the food and beverage industry, property development and quick service restaurant operations.
Genting Hong Kong operates leisure and entertainment activities under Genting Malaysia Bhd, Malaysia’s leading multinational corporation and one of Asia's best-managed companies, running theme parks, gaming facilities, hotels, seaside resorts and entertainment venues. - Rappler.com