By James A. Loyola
PH Resorts Group Holdings, Inc. (PHR), the Udenna Group’s tourism and gaming business firm, has reduced its follow-on offering size to P12 billion from P18.5 billion with the narrowing of its offer price range.
In a disclosure to the Philippine Stock Exchange, the firm said it has set the offer price range to P3.65 to P5.84 per share from the earlier announced maximum offer price of P9.00 per share.
PH Resort plans to sell up to 1.79 billion common shares, with an additional 267.95 million shares earmarked for its greenshoe option.
Proceeds of the offering are expected primarily to fund the design, construction, and development of the first phases of PHR’s two integrated casino resorts, The Emerald in Mactan, Cebu, and Clark Resort in Pampanga.
Any excess proceeds will be used for financing expansion of the Donatela Hotel in Panglao, Bohol, as well as general corporate purposes.
Subject to market conditions, pricing of the proposed offering is expected after the conclusion of an ongoing global roadshow.
PH Resorts Chairman Dennis Uy said the approval of the SEC and PSE takes the firm closer to its aim to heighten the country’s competitiveness in the tourism and gaming industry.
PH Resorts earlier said it planned to spend the bulk of the proceeds, amounting to P9.38 billion for the design, construction and development of the first phase of The Emerald integrated casino and resort in Mactan.
It also intended to allocate P7.98 billion for the development of the first phase of the Clark casino resort and P390.7 million for the expansion of the Donatela Hotel in Panglao island, Bohol.
The firm has not disclosed the revised use of proceeds with the smaller offering size.
The Emerald will rise on a 13.5 hectare prime beachfront area on Mactan. Construction commenced in December 2017 and is expected to be completed in time for its anticipated opening in the third quarter of 2020.
Upon completion, the first phase of The Emerald is expected to have 7,585 square meters of aggregate gaming floor area, with 1,186 electronic gaming machines, 146 gaming tables, a five-star hotel, with 838 rooms, including five villas, a retail complex covering an approximate area of 8,000 square meters, a convention center, and 18 restaurants.
The second phase is expected to have 9,400 square meters of aggregate gaming floor area, a five-star hotel with 1,300 rooms and F&B and retail areas of 5,700 square meters and 7,600 square meters, respectively.
Clark Resort will be located on a 4.0 hectare site located in Clark Freeport Zone. Construction is expected to commence in the first quarter of 2019 and is expected to be completed in time for the anticipated opening in 2022.
Upon completion, Clark Resort is expected to have 600 electronic gaming machines, 100 gaming tables, several hotels with 400 rooms, and a retail and restaurant complex.
Donatela Hotel, a boutique-style, upscale hotel in Tawala, Panglao Island, Bohol has 12 upscale villas with pools, fine-dining restaurants and a wine cellar.
The firm plans to expand the existing capacity of the resort by adding 61 more rooms, developing a beachfront, and building an infinity pool, several new restaurants and meeting space.
DHPC is currently in the design and development phase and expects expansion works to commence in the beginning of 2019 and to be completed by 2020.