Philippine casino group in flat stock market debut

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Manila casinoPhilippine casino operator Travellers International Hotel Group Inc had a disappointing debut on November 5 after raising $470 million in its IPO, hurt by reluctance on the part of some investors to pick up gaming stocks, Reuters reported.

The lacklustre performance could bode ill for next week’s listing of Robinsons Retail Holdings Inc, which raised $650 million in the country’s largest ever initial public offering.

But some fund managers stressed the Traveller’s debut was hamstrung by factors specific to the company, including valuations.

“It is not reflective of the overall market, because there are different factors — you also have pricing, you also have sectors,” said Vittorio Gomez, vice president and fund manager at Rizal Commercial Banking Corp.

“It being a gaming name, we also have a lot of clients who are mandated not to invest in such names,” he said.

Travellers’s shares were changing hands at 11.30 pesos in mid-morning trade, just 0.2 per cent higher than its IPO price of 11.28 pesos. At one point, it traded as low as 11.28. The broader market was also flat.

Travellers, a venture between casino operator Genting Hong Kong Ltd and Philippine conglomerate Alliance Global Group Inc, will use the proceeds of the IPO to expand Resorts World Manila, the first integrated casino-entertainment complex in Manila. The city is positioning itself as an alternative to established gaming centres in the region such as Macau.

The Philippines, like other countries in Southeast Asia has seen a surge in listings this year, though funds raised have not lived up to initial hopes after investor sentiment towards emerging markets cooled on worries about a pullback in the US central bank’s bond-buying program.

In addition to Robinsons, three other Philippine firms will list this year. Resort hotel owner Discovery World Corp, appliance maker Concepcion Industrial Corp and Frontier Oil Corp aim to raise a combined $130 million from their IPOs.

Bank of America Merrill Lynch, CIMB, Maybank , Religare and UBS were joint global coordinators, international bookrunners and international lead managers for the Travellers’ offer.

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Reading Time: 2 minutes

Philippine casino operator Travellers International Hotel Group Inc had a disappointing debut on November 5 after raising $470 million in its IPO, hurt by reluctance on the part of some investors to pick up gaming stocks, Reuters reported.

Reading Time: 2 minutes

Manila casinoPhilippine casino operator Travellers International Hotel Group Inc had a disappointing debut on November 5 after raising $470 million in its IPO, hurt by reluctance on the part of some investors to pick up gaming stocks, Reuters reported.

The lacklustre performance could bode ill for next week’s listing of Robinsons Retail Holdings Inc, which raised $650 million in the country’s largest ever initial public offering.

But some fund managers stressed the Traveller’s debut was hamstrung by factors specific to the company, including valuations.

“It is not reflective of the overall market, because there are different factors — you also have pricing, you also have sectors,” said Vittorio Gomez, vice president and fund manager at Rizal Commercial Banking Corp.

“It being a gaming name, we also have a lot of clients who are mandated not to invest in such names,” he said.

Travellers’s shares were changing hands at 11.30 pesos in mid-morning trade, just 0.2 per cent higher than its IPO price of 11.28 pesos. At one point, it traded as low as 11.28. The broader market was also flat.

Travellers, a venture between casino operator Genting Hong Kong Ltd and Philippine conglomerate Alliance Global Group Inc, will use the proceeds of the IPO to expand Resorts World Manila, the first integrated casino-entertainment complex in Manila. The city is positioning itself as an alternative to established gaming centres in the region such as Macau.

The Philippines, like other countries in Southeast Asia has seen a surge in listings this year, though funds raised have not lived up to initial hopes after investor sentiment towards emerging markets cooled on worries about a pullback in the US central bank’s bond-buying program.

In addition to Robinsons, three other Philippine firms will list this year. Resort hotel owner Discovery World Corp, appliance maker Concepcion Industrial Corp and Frontier Oil Corp aim to raise a combined $130 million from their IPOs.

Bank of America Merrill Lynch, CIMB, Maybank , Religare and UBS were joint global coordinators, international bookrunners and international lead managers for the Travellers’ offer.

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