MANILA, Philippines - The company behind upscale Discovery Shores Boracay plans to raise P1 billion from its initial public offering (IPO).
Discovery World Corp. submitted a registration statement to the Securities and Exchange Commission late last week, making it the third company to signify plans to list in the local bourse.
The resort operator plans to sell 306 million common shares at a maximum price of P3.28 apiece to generate P1.003 billion in fresh capital.
“The net proceeds from the offer will be used for investments in new businesses, expansion of current business, debt retirement and working capital purposes,†Discovery World said.
Net proceeds from the share sale is P955.186 million, Discovery World said, adding that it is banking on the recognized brand name, strategic location and excellent facilities for growth.
The shares to be sold represent 40.05 percent of the issued and outstanding common shares of Discovery World which is in the process of changing its name from Southern Visayas Property Holdings Inc.
To date, the company operates upscale Discovery Shores Boracay that started commercial operations in 2007. The resort has been awarded the No. 1 Hotel Spa in Asia, Top Family Hotel in Asia, No. 2 Top Resorts in Asia and No. 5 Top Resorts in the World in 2012.
Discovery World also operates under the brands Discovery Boracay, Discovery Shores, Platitos Resto-Bar, Sands Lounge, Indogo Resto-bar and Sunken Pool Bar.
Profits of the company sank to P21.38 million last year from P62.64 million in 2011 given high operating costs, offsetting the 5.23 percent growth in revenues to P366 million from P347.78 million in 2011.
Major shareholders of Discovery World are JKTC Equities Inc. (66.07 percent) and The Discovery Leisure Co. Inc. (33.93 percent).
JKTC is an investment holding firm of the Tiu family. It has investments in Hong Kong, Singapore, Taiwan, China, Australia, New Zealand and Canada.
The Discovery Leisure, for its part, manages the Discovery hotel and resort properties in the Philippines.
Discovery World tapped Abacus Capital & Investment Corp. as the issue manager and underwriter.