Travellers International files record P40-B IPO

MANILA, Philippines - Gaming operator Travellers International Hotel Group, a joint venture between real estate tycoon Andrew Tan and Malaysian gaming tycoon Lim Kok Thay, aims to raise as much as P40.049 billion in possibly the Philippines’ largest  equity share sale ever.

Travellers International, which runs a 50-50 casino venture called Resorts World Manila, is debuting on the stock exchange with an initial public offering (IPO) of up to 1.713 billion shares, consisting of 1.49 billion primary and secondary shares and an over-allotment option of up to 223.56 million shares.

Based on the company’s registration statement submitted to securities regulators, Travellers International will sell up to 1.04 billion shares overseas and as much as 447.13 million shares in the domestic market at P23.38 per share.

CIMB Securities Pte. Ltd., Maybank ATR Kim Eng Securities (Singapore), Merill Lynch (Singapore), Religare Capital Markets Hong Kong Ltd. and UBS AG Hong Kong branch are the international bookrunners and international lead managers while Maybank ATR Kim-Eng and UBS are the joint domestic lead underwriters.

Of the expected estimated proceeds, Travellers International is seen to receive P17.42 billion from the sale of 745.21 million primary shares and a smiliar P17.42 billion will go directly to the secondary shareholders.

Proceeds from the offering will be used to fund the expansion of Resorts World Manila, the construction of another casino hub at the Pagcor Entertainment City along Manila Bay, as well as for repayment of debt and general corporate purposes.

Resorts World Manila is the first integrated gaming, entertainment, leisure and hospitality resort in the country, situated on an 11.5-hectare property across the Ninoy Aquino International Airport Terminal 3  in Pasay City and within a mixed-use community dubbed Newport City. It features residential condominiums, hotels, restaurants, shops and offices developed by Tan’s Megaworld Corp.

Construction of Resorts World Manila commenced in July 2008 and its gaming facilities opened in August 2009, along with the 11,534-square meter Newport Mall, a 1,500 seat performing arts theater and a four-screen cinema.  The entertainment facility is now home to the 342 room-Marriott Hotel Manila and the Maxims Hotel which offers 172 suites and villas and the 712-room Remington Hotel.

Travellers International has began the third phase of the expansion of Resorts World Manila, which involves the construction of close to 1,000 new hotel rooms, a Sheraton Hotel to house about 350 rooms, another five star hotel (350 rooms) and the expansion of the all-suite Maxims Hotel, which shall provide an additional 200 rooms.

The new phase, which will take three to four years to complete, will also entail the expansion of gaming and retail facilities to take advantage of the expected growth in tourist arrivals in the country.