Pre-marketing begins for up-to-$600m Travellers International Hotel float

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Pre-marketing begins for up-to-$600m Travellers International Hotel float

Travellers International Hotel Group has started pre-marketing for its IPO, which could raise up to $600m.

The company, a joint venture between casino operator Genting Hong Kong and Philippine conglomerate Alliance Global, began investor education on June 13. 

Philippine casino assets have performed well this year and Travellers is hoping for a similar response. It is targeting an IPO size of $500m-$600m plus a greenshoe, say bankers. 

Most recently, Melco Crown Philippines Resorts priced a follow-on offer in April at the top of the price range, raising $337m. But unlike Melco, which was using the proceeds to fund the launch of its first Philippine casino, Travellers’ Resort World Manila casino is already up and running. 

However, Melco priced at a time when markets were trading far better. Sentiment has changed a lot since, with the Philippines Stock Exchange falling around 11% so far in June. As a result bankers say Travellers has not set a firm date for pricing and instead will make a call based on how markets are performing and investor feedback. 

In addition to Melco Crown, comparables to Travellers include Genting, Sands China, and Wynn Macau. 

Bank of America Merrill Lynch, CIMB, Maybank, Religare Capital Markets and UBS are bookrunners. CLSA, Credit Suisse and Morgan Stanley are co-bookrunners.

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