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Discovery revives IPO, cuts offer size

Posted on October 22, 2013

RESORT OPERATOR Discovery World Corp. has revived plans to go public but is reducing its offer size, the Philippine Stock Exchange (PSE) yesterday announced.

The company will now be selling 168 million shares, down from the 306 million planned in August, at P3.28 apiece, the bourse said in a circular. This would slash the expected proceeds to P551 million from P1 billion.

Discovery is looking to conduct its initial public offering (IPO) from Nov. 8-14, with a tentative listing date of Nov. 21. Abacus Capital & Investment Corp. has been appointed issue manager and underwriter.

The company, which deferred its Aug. 12-19 IPO due to “certain forthcoming events”, said the reduced offer size was prompted by changes to its business plans.

“Given the company’s decision to concentrate on the tourism business, the company will no longer pursue the investment in Enderun Colleges, Inc,” Discovery said.

“It will also delay the development of Palawan Cove Corp. in light of the company’s acquisition of Euro-Pacific Resorts, Inc.”

Palawan Cove has beachfront properties in San Vicente, Palawan, while Euro-Pacific owns and operates the Club Paradise Resort in Dimakya Island, Coron.

“It will also reallocate a portion of the IPO proceeds to repay the loan incurred to acquire Euro-Pacific,” Discovery added.

The firm, which operates the Discovery Shores Boracay resort hotel in Aklan, is the latest to downsize its IPO amid a weak market.

Tugboat operator Harbor Star Shipping Services, Inc. and Resorts World Manila operator Travellers International Hotel Group, Inc., which recently revived IPOs that were shelved in July, are looking at lower proceeds.

Harbor Star, which ends its IPO tomorrow, expects to raise P341 million instead of P593 million after cutting its offer price to P1.88 per share from P3.27.

Travellers, which starts its offering tomorrow, is looking to secure up to P21 billion, from P40 billion previously, after slashing its price to P11.28 from “up to P23.38.”

Robinsons Retail Holdings, Inc., meanwhile, expects to raise P32 billion instead of P42 billion after adjusting its price range to P55-66 per share, down from the P86.64 set when it filed its IPO application in June. -- CHCV