Leisure & Resorts World Corp. is raising as much as P4.38 billion from the issuance of 1.2 billion common shares to six new investors through a private placement.
LRWC said in a disclosure to the stock exchange its board approved the issuance of 1.217 billion common shares from an unissued capital stock at the issue price of P3.60 apiece.
The shares were subscribed by Fortunegate Holdings Philippines Inc., Millennium Pan Asia Business Management Services Inc., XII Capital Inc. and Diamond Fortune Holdings Inc., which acquired to 230 million shares each.
Another investor, Euphonious Holdings Inc., will also subscribe to 121 million shares while Leisure Advantage Inc. will acquire 176.6 million shares.
The issue price of P3.60 represents a four-percent discount to the stock’s closing price of P3.75 Monday.
LRWC in January obtained a shareholders’ approval to issue up to 1.3 billion in shares to refinance debt and fund expansion plans.
LRWC wants to pay the debt it incurred when it purchased a property in Boracay designed as a casino and resort complex.
The $550-million project, however, is in limbo following the strong opposition of various sectors.
LRWC plans to start this year the redevelopment of Cyberpark, a 10-hectare pocket light industrial park in Sta.Ana, Cagayan province.
Cyberpark is currently being master planned to host office buildings and residential dormitories for online gaming operators. Two legacy buildings have already been fully leased out to a locator, while the next development phase will start in the fourth quarter of 2018 primarily for office spaces.
LRWC posted a consolidated net income of P266 million in the first nine months of 2018, down 27 percent from P362.7 million year-on-year. It attributed the the lower profit to its divestment from the City of Dreams project.
The group’s casino division contributed a profit of P263.2 million, up 70 percent from P155.3 million on year.