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Published on : Thursday, November 7, 2013
Travellers International Hotel Group, the operator of Resorts World Manila, has made its first appearance in stock market Tuesday and ended slightly down at P11.26 apiece from its initial public offering price of P11.28.
Travellers, a joint venture between casino operator Genting Hong Kong Ltd. and tycoon Andrew Tan’s Alliance Global Group Inc.raised P17.7 billion million from the maiden offering of 1.57 billion shares, excluding a greenshoe option of approximately 236 million shares. The company priced its IPO at P11.28 per share or at the middle of the indicative range of P10.65 and P11.88 apiece.Travellers.
The IPO consisted of 1.57 billion in primary shares plus an over-allotment option of 236 million shares. Travellers raised P20.4 billion ($470 million) from the IPO, which will be used to fund its expansion projects.
Travellers preceeded the list of most actively traded stocks on Tuesday. SM Prime Holdings Inc., Metropolitan Bank and Trust Co., Philippine Long Distance Telephone Co. and Ayala Land Inc. followed it. Other actively traded stocks were SM Investments Corp., Global-Estate Resorts Inc., Universal Robina Corp., Metro Pacific Investments Corp. and Alliance Global Group Inc.
Travellers president Kiongson Sian said, “The success of TIHGI’s IPO demonstrates the global investment community’s belief in the Philippine tourism and entertainment sector, and in particular, Travellers, as the vehicle to take on the strong macroeconomic growth potential of the Philippines.” He also said that the company would attribute total capital expense amounting to $650 million to fund the phase two and phase three development of Resorts World Manila, the largest and integrated tourism resort located in Pasay City.
Kiongson Sian said that the expansion of Resorts World Manila includes the construction of a grand ballroom and conference center, adding rooms in Marriott Hotel and building new hotels Sheraton and Hilton Manila for completion by 2017. Resorts World was generating tourist arrivals of 20,000 visitors per day for the entire complex, which is expected to go up to 34,000 toward Christmas he added.
The Travellers’ president also said that the company remains hopeful on its expectation and believes that competition will be healthy among the gaming supporters as they help promote the Philippines as a tourism and gaming hub.