Discovery Shores Boracay operator mulls P1-B offering


Posted at Jul 12 2013 05:49 PM | Updated as of Jul 13 2013 01:49 AM

MANILA, Philippines - Discovery World Corp., which operates Discovery Shores Boracay, is planning to hold a P1-billion initial public offering in August.

The company, owned by the Tiu family, will offer 306 million common shares at a maximum offer price of P3.28 per share. The shares represent 40.5% of the company's issued and outstanding common shares.

The offer period is from July 23 to July 29, while listing date is set for August 1.

Abacus Capital and Investments Corp. has been tapped as the issue manager and underwriter for the offering.

Discovery World said it will use the proceeds from the IPO for investments in new businesses, expansion projects, as well as to finance working capital and to retire debt.

The company has allocated P575 million for new businesses, which includes a resort in Palawan

Discovery World is also allotting P100 million for investment in a cruise business and P250 million to acquire 20% stake in Enderun Colleges, a school offering programs in the field hotel and restaurant management and culinary arts.

The developer is also allocating P125 million to expand Discovery Shores Boracay, which includes building new rooms and villas, this year.

Aside from Discovery World, the Tiu family also owns two other listed companies - remittance firm I-Remit Inc. and steel manufacturing firm TKC Steel Corp.

The Tiu family also owns Sterling Bank of Asia, Discovery Suites in Pasig and Tagaytay and property firm JTKC Land developer.