The casino venture of businessman Dennis Uy plans to raise as much as P18.48 billion through a share sale scheduled before the end of 2018.
Philippine H20 Ventures Inc., soon to be called PH Resorts Group Holdings Inc., said in a filing with the Securities and Exchange Commission it would sell up to 2.054 billion in common shares with an indicative offer price of up to P9 apiece
About 1.78 billion of the 2.054 billion shares are primary shares while 267.94 million are for over-allotment shares.
The indicative offering price of P9 is 73-percent higher compared with Philippine H20 closing price of P5.20 per share on Friday.
The company has reportedly tapped China Banking Corp. and CLSA Ltd. as the underwriters of the follow-on offering.
The planned share sale will also enable the company to comply with the 10 percent minimum public ownership required on listed companies.
The Uy-led Udenna Development Corp. in March completed the acquisition of a 62-percent stake in Philippine H2O under a share purchase agreement mainly with Jolliville Holdings Corp.
Shareholders of Philippine H20 during a stockholders’ meeting held in June approved the change in the company’s corporate name to PH Resorts Group Holdings. Inc and an increase in the capital base to P8 billion from P500 million.
The increase in the company’s capital will enable Philippine H20 to issue P4.5 billion worth of shares and cash to Udenna Group, which in turn, will infuse capital into tourism-related businesses, including the two integrated resort and casino projects.
The additional capital will increase Udenna’s stake in Philippine H2O to 98 percent.
Uy is building a $300-million casino project called Lapu-Lapu Leisure Mactan on a 12-hectare lot in Cebu. Jenniffer B. Austria
It is also finalizing plans to build a second casino within 177-hectare Clark Global City in the Clark Freeport Zone in Pampanga. The project is scheduled for completion by 2022.
Uy said the group was in talks with potential operators to manage the two casino projects.
Aside from the two casino ventures, the company will also continue to actively pursue and consider other tourism, hospitality and leisure projects.
Uy’s Group controls several listed companies, namely Phoenix Petroleum Philippines Inc., Chelsea Logistics Holdings Corp., 2GO Group Inc. and recently ISM Communications Corp.