PH Resorts Group Holdings Inc., the gambling unit of Davao-based businessman Dennis Uy, has asked for a voluntary trading suspension of its shares at the Philippine Stock Exchange (PSE) during its follow-on offering.
Shares of PH Resorts will be suspended for trading starting Wednesday through November 5, when its offer shares will be listed at the PSE.
The company’s shares rose 28 percent on Tuesday to close at P3.27 apiece or double the price of the follow-on offer price at P1.68 apiece.
“This is the first time that the company is conducting a public offering under its gaming and hospitality business and as such, the company is requesting that it be allowed an offer period for its follow-on offering that is akin to an initial public offer whereby no shares are traded during its offer period until listing date,” the company said.
“A trading suspension will allow the company to conduct its follow-on offering activities without potential market manipulations on the current market price of its shares. It will also allow the potential investors and the public to properly make investment decisions without being influenced by fluctuations in the trading price of the company’s shares that may be caused by artificial market manipulations during the offer period until the follow-on shares are listed.”
PH Resorts was previously named as Philippine H2O Ventures Inc., the water unit of businessman Jolly L. Ting.
In 2018, Uy bought shares in the company that allowed him to do a backdoor listing of its gambling unit. PH Resorts then became a unit of Udenna Development Corp., Uy’s holding firm.
According to PSE rules, a backdoor listed company must conduct a follow-on offering after the unlisted firm takes over the listed firm.
PH Resorts’ follow on offer is composed of 300 million in common shares and an over-allotment option of up to 150 million common shares, with a par value of P1 per share.
The tentative start of the offer period is on October 21 and will run through October 28.
At P1.68 apiece, the company is raising some P756 million in fresh cash from the sale of shares.
The company has also moved its tentative listing date on November 5, from the previously announced November 3 listing.
The net proceeds will be used to partially fund the construction of the first phase of Emerald Bay, the company’s flagship integrated casino beach front resort in Mactan, Cebu.
Emerald Bay, a P24.2-billion project, will be the first integrated casino resort on Mactan Island with access from the Cebu-Mactan International Airport.
The gambling site will be constructed in two phases, with the targeted completion of the first phase by the second quarter of 2022. Upon completion of the first phase, Emerald Bay will feature 122 gaming tables for mass, premium mass and junkets; 600 electronic gaming machines and 270 hotel room bays.
Unicapital Inc. and Abacus Capital and Investment Corp. were appointed as lead and co-lead underwriters, respectively.
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Article and Photo originally posted by Business Mirror last October 20, 2020 and written by VG Cabuag.
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