Genting’s Philippine unit sets price guidance for S$623m IPO

Published: 4:02 AM, October 9, 2013
Updated: 8:40 PM, October 9, 2013

MANILA — A Philippine casino operator, jointly run by Malaysian gambling tycoon Lim Kok Thay and his billionaire Filipino business partner Andrew Tan, has moved ahead with its initial public offering that could raise US$499 million (S$623 million), potentially the largest IPO in that country this year.

Travellers International Hotel Group, a joint venture between casino operator Genting Hong Kong and Philippine conglomerate Alliance Global Group, set an indicative IPO price of 10.65 to 11.88 pesos per share, or about half of what it had initially planned from the share offer, according to its term sheet. It plans to sell about 1.57 billion shares and has an over-allotment option that would boost this offering size to up to 1.81 billion shares valued at US$499 million at the top end of the price range.

The company had hoped to raise up to US$1 billion before downsizing its IPO by nearly half, and then postponing it altogether in July, citing weak markets. It plans to use proceeds from the IPO to fund more casino-related developments, including the US$1.1 billion Resorts World Bayshore resort in Manila.

Travellers, the operator of Resorts World Manila, started taking orders from international investors yesterday with an aim to list on the Philippine bourse on Nov 5, the term sheet showed. Final pricing is scheduled for Oct 17.

The revival of its IPO comes after the domestic equities market emerged as one of the best-performing markets in South-east Asia.

A successful IPO could bolster demand for a planned US$800-million offering by Robinsons Retail Group, an operator of chains including Toys “R” Us, Topshop, True Value and Ben Sherman in the Philippines. Robinsons Retail is gauging investor demand for its offering.

The joint venture operates Resorts World Manila, which opened in August 2009, and includes a casino, three hotels, a shopping mall, cinemas and a performing arts theatre. AGENCIES