THE Philippine Stock Exchange (PSE) approved Udenna Group unit PH Resorts Group Holdings, Inc.’s (PHR) plan to conduct a follow-on offering of primary shares, with the stock responding by tumbling nearly 12%.
In a statement on Friday, PHR, the Udenna Group’s tourism and gaming business, said it is now cleared to issue up to 1.786 billion common shares with the option to issue a further 267.95 million shares if the need arises to stabilize prices.
In its disclosure to the stock exchange, the company said the estimated price range for the issue is between P3.65 and P5.84. The stock closed at P5.40 Friday, down 11.76%, coming off a low of P5.02.
At the top end of the pricing range, the company could raise as much as P10.43 billion without accounting for the option to issue more shares. At the low end of the pricing range, it could raise P6.52 billion.
PHR earlier obtained the approval of the Securities and Exchange Commission for the issue on Jan.24.
Proceeds will 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.
The remainder will finance the expansion of the Donatela Hotel in Panglao, Bohol, will some funds will be used for general corporate purposes. Subject to market conditions, pricing of the proposed offering is expected after the conclusion of a global roadshow that began yesterday.
“The Emerald and Clark Resort are envisioned to be world-class premium tourism projects aimed at attracting local and international tourists. The same goal is reflected in our expansion of the Donatela Hotel,” Chairman of PH Resorts Group Holdings, Inc., Dennis A. Uy was quoted as saying.
The company appointed CLSA Ltd. and UBS AG’s Singapore branch as the international underwriters, while China Bank Capital Corp. won the mandate as the domestic lead underwriter.
Udenna Corp. also controls Phoenix Petroleum Philippines, Inc.; shipper Chelsea Logistics Holdings Corp.; real estate firm Udenna Development Corp.; Enderun Colleges, Inc.; and Udenna Infrastructure Corp. — Janina C. Lim