The board of PH Resorts Group Holdings Inc., the gaming and hospitality arm of Davao businessman Dennis Uy’s Udenna Corp., has approved the company’s follow-on offering of up to P1.12 billion.
In its disclosure to the Philippine Stock Exchange, the company said it will issue a total of 450 million common shares, some 150 million of which will be its over-allotment option. These will come from the unsubscribed portion of the company’s authorized capital stock, the company said.
It priced the offer between P1 and P2.50 per share.
“These offer shares shall be subject to compliance with existing laws and the rules and regulations and approval by the Securities and Exchange Commission and the Philippine Stock Exchange,” the company said.
The company is raising funds for the construction of its gambling assets in Cebu and Pampanga.
It earlier shelved its downsized P12-billion stock offering following the conclusion of its roadshow and marketing efforts “after its recent investment initiatives and careful consideration of its business strategies,” the company said in its previous disclosure.
The firm had planned to sell up to 1.79 billion common shares at P3.65 to P5.84 apiece, adjusted from its initial maximum offer price of P9.00 per share.
Proceeds of the sale was intended to fund the design, construction, and development of the first phases of the company’s two integrated casino resorts, the Emerald in Mactan, Cebu, and Clark Resort in Pampanga.
A portion will finance the expansion of the Donatela Hotel in Panglao, Bohol, and the rest will go to general corporate purposes.
The company earlier has obtained an advance of $42.5 million from Emerald Development Holdings Ltd., an offshore entity whollyowned by Udenna.
“This advance represents a significant step in realizing the completion of the Emerald Bay Resort and Casino,” company President and CEO Raymundo Martin M. Escalona said.