Genting, Alliance Global defer Travellers IPO citing volatile market

Alliance Global Group Inc. and partner Genting Hong Kong Ltd. on Tuesday said they decided to postpone the initial public offering of joint venture Travellers International Hotel Group Inc. on the Philippine Stock Exchange, because of the current volatility plaguing markets across the globe.

 

The Travellers International IPO, estimated at P42 billion, is supposed to be one of the biggest share sale in the Philippine market this year. 

 

“In view of the current market conditions, the company decided to postpone the implementation of its IPO,” Travellers International noted in a letter to the PSE. “We shall inform your good office when the company decides to resume its IPO as soon as more favorable market conditions occur,” it added.

 

The company was supposed to list its shares under the PSE's first board on July 19.

 

Regional and global markets have been roiled by the likelihood that the US Federal Reserve will trim its $85-billion a month stimulus later this year as the world's biggest economy improves and generates more jobs.

 

Travellers International plans to sell 1.8 billion shares at an offer price of P23.38 per share. The offer shares include 1.572 billion primary common shares and 235.983 million overallotment shares which the company may sell within 30 days after the listing date.

 

The company intends to use the proceeds from the IPO to repay debts and partly finance the P24.7 billion expansion of Resorts World Manila, a mixed-used development across Terminal 3 of the Ninoy Aquino International Airport in Pasay City. — VS, GMA News