MANILA, Philippines - Hotel and casino operator Travellers International Hotel Group Inc. has finalized the deferral of its P42-billion initial public offering (IPO), citing volatile market conditions.
Travellers, a joint venture between property magnate Andrew Tan and Malaysian gaming tycoon Lim Kok Thay, said it would push through with the share sale when the market improves.
“In view of current market conditions, the company decided to postpone the implementation of its IPO,†Travellers said in a letter to the Philippine Stock Exchange (PSE).
“We shall inform your good office when the company decides to resume its IPO as soon as more favorable market conditions occur,†it added.
In its IPO application to the local bourse, Travellers planned to sell 1.573 billion primary shares and another 235.98 million shares under an over-allotment option.
Offer price is at P23.38 per share, allowing the company to raise as much as P42.29 billion including the over-allotment option.
The IPO was approved by the PSE board of directors on June 26.
Proceeds from the IPO will bankroll the construction of the $1.1-billion Resorts World Bayshore integrated casino and hotel development along Manila Bay.
Travellers, which operates the eight-hectare Resorts World Manila hotel and casino complex, is a joint venture between Lim’s Genting Bhd. and Tan’s Alliance Global Group.
It will start building the $1.1-billion Resorts World Bayshore at the Philippine Amusement and Gaming Corp. (Pagcor) Entertainment City this year, with commercial operations scheduled in 2016.