By Jenniffer B. Austria | Posted on Jun. 19, 2013 at 12:01am
[ manilastandardtoday.com ]
Discovery World Corp., the leisure development unit of the Tiu family, plans to hold a P1-billion initial public offering by the third quarter of the year.
Informed sources said Discovery World was keen on holding the IPO despite the current stock market volatility. The company is waiting for the corporate regulators to approve the IPO application.
Discovery World, according to a filing with the Securities and Exchange Commission, plans to offer 306 million common shares at maximum price of P3.28 apiece.
The IPO shares, which will be listed under the first board of the Philippine Stock Exchange, represent 40.5 percent of the company’s issued and outstanding common shares.
Discovery World hired Abacus Capital and Investments Corp. as issue manager and underwriter for the offering.
The company plans to use the net proceeds from the offering for investment in new businesses, expansion, debt retirement and working capital.
Discovery World operates Discovery Shores Boracay, a resort hotel in Boracay Island. It allotted P575 million for new businesses, including a resort in Palawan, as part of an expansion plan.
The company is puting up a resort hotel business in Palawan that will feature world-class, five-star facilities that will target the upper class market.
It is allotting P100 million to invest in a cruise business and P250 million to acquire a 20-percent interest in Enderun Colleges, a school offering programs in the field of hotel and restaurant management and culinary arts.
Discovery World is spending P125 million to expand Discovery Shores Boracay starting this year. The company will construct 15 new bedrooms and villas.
Discovery World in 2012 posted a net income of P38 million, down 39 percent from P62 million in 2011 as revenues dropped to P308 million from P347 million.
Discovery World will be the third Tiu-owned firm to be listed in the PSE. The Tiu family owns remittance firm iRemit Inc. and Steel Corp.
The Tiu family also owns Sterling Bank of Asia, Discovery Suites in Pasig and Tagaytay and JTKC Land Inc.