Travellers International Hotel Group Inc reduced the maximum price of its initial public half by 49%. Travellers International is a joint venture company of Genting Hong Kong Ltd and Philippine-based Alliance Global Group Inc.
According to Lauro Baja, the Head of the Philippine unit of UBS which is arranging the offering, the company cut the price per share to PHP 11.88. On October 1, the company said the shares would cost PHP 23.38 apiece. Baja said the IPO could raise USD 430 million for Travellers International. The company's stock exchange filing revealed that it would be selling 1.57 billion primary shares and 236 million stocks in over-allotment. The IPO would allow the firm to raise funds for expansion. Travellers also said 70% of the shares would be sold abroad.
In a phone interview with Bloomberg, Campos Lanuza & Co Analyst Jomar Lacson said the price reduction would help ensure the marketability of the stock. "It's still a buyer's market because capital markets are still a bit thin. They need to make sure the security is marketable in terms of price," he said.
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