By Jenniffer B. Austria | Posted on Jul. 27, 2013 at 12:01am
[ manilastandardtoday.com ]
The Philippine Stock Exchange approved the P1-billion initial public offering of Discovery World Corp., the property developer of high-end resort Discovery Shores Boracay.
The PSE said in a memorandum Discovery World planned to sell 306 million primary shares to the public at an offer price of P3.28 apiece next month.
The offer period was set from Aug. 12 to Aug.19, while listing date was scheduled on Aug. 29. The shares will be listed under the first board of the PSE.
It said after the IPO, Discovery World would have a public float of 40.05 percent and market capitalization of P2.5 billion.
About 60 percent of the offer shares would be sold to the public, 30 percent through trading participants and 10 percent to local small investors.
Abacus Capital and Investment Corp. was tapped as the issue manager and lead underwriter for the offering.
Discovery World said it has a dividend policy of distributing to shareholders at least 10 percent of the company’s income for the previous fiscal year.
Proceeds from the maiden offering would be used for investment in new businesses, debt retirement and working capital purposes.
The company plans to spend P575 million for new businesses including a resort in Coron, Palawan.
The leisure development firm is also looking at entering the resort hotel business in Palawan that will feature world-class, five-star facilities for 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 build another 12 villas in Discovery Shores Boracay.