PH Resorts shelves follow-on offering
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Fri, 01 Mar 2019 17:29:36 +0000
PH Resorts Group Holdings Inc. has deferred its planned P12-billion follow-on offering (FOO) after receiving suggestions that it should pursue other funding plans.
In a regulatory filing on Friday, PH Resorts President Raymundo Martin Escalona said the decision to postpone the offering came after the listed company’s roadshow and marketing efforts provided insights on “more strategically alternative options for funding needs.”
It emphasized, however, that it was still eager to push through with it, with Escalona adding that it “shall keep the PSE (Philippine Stock Exchange) informed of PH Resorts’ further plans once we have determined the new timetable for the offering.”
Under the FOO, PH Resorts planned to sell up to 1.786 billion common shares with an overallotment option of up to 267.95 million at a target price range of P3.65 to P5.84 each.
Proceeds shall be used to finance the design, construction, and development of the first phases of its two integrated casino resorts: The
Emerald on Mactan island in Cebu province’s Lapu-Lapu City, which is expected to be finished in 2020; and Clark Resort in Pampanga province’s Clark Freeport Zone, which is due for completion in 2022.
Excess proceeds shall be used to fund the expansion of the Donatela Hotel on Bohol province’s Panglao island, as well as for general corporate purposes.
The company had picked CLSA Ltd. and UBS AG’s Singapore branch as international underwriters, and China Bank Capital Corp. as the domestic lead underwriter for the offering.
The PSE gave the go-signal for the FOO on February 13 after the Securities and Exchange Commission gave theirs on January 24.
Formerly Philippine H2O Ventures Corp., PH Resorts transformed into a holding firm of Davao City-based businessman Dennis Uy to hold his investments in tourism-related developments.
Uy acquired last year a 62-percent stake in Philippine H2O from listed Jolliville Holdings Inc. as his vehicle to list PH Resorts.
Shares of PH Resorts grew by 20 centavos or 4.02 percent to finish at P5.18 apiece on Friday.
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