The share price of PH Resorts Group Holdings, Inc., the Udenna Group’s gaming and hospitality subsidiary, dropped 33.33 percent after the listing of new shares from its P756 million follow on offering.
Philippine Stock Exchange data show, PHR shares closed at P2.18 apiece from its previous close of P3.27 per share. However, this is almost 30 percent higher than its FOO price of P1.68 a share.
“PHR was one of the most traded stocks for the day, as it returned from suspension after conducting its follow-on offering. It also ended as one of the biggest losers,” said AAA Equities Head of Research Chris Mangun.
He noted that, “Investors may have some doubts regarding the success of its Emerald Bay integrated tourism resort in Mactan, Cebu, expected to have a soft opening in the fourth quarter of next year, due to pandemic concerns.”
Under its FOO, the firm offered 300 million shares with an overallotment option of P150 million shares.
The net proceeds from the FOO will be used by the firm to partially fund the completion of the first phase of Emerald Bay, PH Resorts’ flagship integrated casino beach front resort in Mactan, Cebu.
Emerald Bay will be the first integrated casino resort on Mactan Island with convenient access from the Cebu-Mactan International Airport (CMIA).
This FOO will also increases PHR’s public ownership level from the current 10 percent.
Emerald Bay 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 EGMs and 270 hotel room bays.
However, the management team is pushing for a soft opening by the end of 2021, and continue to increase its gaming capacity and hotel rooms starting 2022.
“While Emerald Bay’s first phase is scheduled for completion and opening by the second quarter of 2022, there’s scope for us to have a soft opening by the end of next year. With continued support from our stakeholders and shareholders, we can achieve this,” PHR Chief Operating Officer Jose Angel Sueiro said. PH Resorts has appointed Unicapital, Inc. and Abacus Capital and Investment Corporation as lead and co-lead underwriters, respectively, for the follow-on offering.
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Article and Photo originally posted by Manila Bulletin last November5, 2020 3:02pm and written by James A. Loyola.
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