PH Resorts Group Holdings Inc., the leisure and gaming arm of businessman Dennis Uy, set the final price of its planned follow-on offering at P1.68 per share.
PH Resorts based on this price will raise up to P756 million from the sale of 300 million common shares and over-allotment option for another 150 million shares.
The final price is close to the middle of the indicative offer price of P1 to P2.50 that the company earlier considered.
The P1.68 final price offers a premium of 37.5 percent over the stock’s closing of P2.69 on Friday.
Documents showed PH Resorts would use the net proceeds from the offering to partially fund the construction of the first phase of Emerald Bay, the company’s flagship beachfront resort in Mactan, Cebu.
Emerald Bay will be the first integrated casino resort on Mactan Island with a convenient access from Cebu-Mactan International Airport.
It 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 electronic gaming machines; and 270 hotel room bays.
The management team is pushing for a soft opening by the end of 2021 and expects to increase its gaming capacity and hotel rooms starting 2022.
PH Resorts expects gaming revenues in the country to surpass the 2019 level by 2021.
It cited data from Innovation Group showing that gross gaming revenues in the country would likely drop to $1.7 billion this year from $4.3 billion in 2019, before recovering to $5.1 billion by 2021.
PH Resorts appointed Unicapital Inc. and Abacus Capital and Investment Corp. as lead and co-lead underwriters, respectively, for the follow-on offering.
The company is designing its second gaming resort in Clark, Pampanga.