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Udenna’s PH Resorts downsizes FOO to P1.35 B

By James A. Loyola

PH Resorts Group Holdings, Inc. (PHR), the Udenna Group’s tourism and gaming business firm, is planning to raise up to P1.35 billion from a follow-on offering (FOO), a year after shelving a P12 billion equity issue.

In a disclosure to the Philippine Stock Exchange, the firm said its Board of Directors has approved to accept subscriptions to a follow-on offering of up to 300 million common shares, with an over-allotment option of up to 150 million shares.

The shares, to come from the unsubscribed portion of the Corporation’s authorized capital stock, will be offered to the public at a price range of P1.00 to P2.50 per share.

In March 2019, PH Resorts said it has decided to shelve its downsized P12 billion stock offering after the conclusion of its roadshow and marketing efforts.

PHR said it is deferring its follow-on-offering (FOO) “after its recent investment initiatives and careful consideration of its business strategies.”

“During the course of PHR’s roadshow and marketing efforts, it was presented with more strategically suitable alternative options for its funding needs. Thus, upon careful consideration, PHR has decided to defer its Offering,” PHR President Raymundo Martin M. Escalona said.

The firm had planned to sell up to 1.79 billion common shares at P3.65 to P5.84 apiece, adjusted from its initial maximum offer price of P9.00 per share.

Proceeds of the sale was intended to fund the design, construction, and development of the first phases of PHR’s two integrated casino resorts, The Emerald in Mactan, Cebu, and Clark Resort in Pampanga.

A portion, on the other hand, will finance the expansion of the Donatela Hotel in Panglao, Bohol, and the rest will go to general corporate purposes.

“Albeit insights for alternative options for its funding needs, the company stresses that it is still eager in pursuing the Offering and fully intends to resume its FOO at the most apt time,” PHR said.

PH Resorts earlier said it planned to spend the bulk of the proceeds, amounting to P9.38 billion for the design, construction and development of the first phase of The Emerald integrated casino and resort in Mactan.

It also intended to allocate P7.98 billion for the development of the first phase of the Clark casino resort and P390.7 million for the expansion of the Donatela Hotel in Panglao island, Bohol.


Source: Manila Bulletin (https://business.mb.com.ph/2020/06/22/udennas-ph-resorts-downsizes-foo-to-p1-35-b/)

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