October 18, 2013

Travellers IPO priced at P11.28/sh

Travellers has reportedly priced its IPO at P11.28/sh or almost at the midpoint of P10.65-P11.88/sh price range that the company disclosed. BusinessWorld today quoted one of the underwriters as saying the international tranch was five times oversubscribed with 70% of the demand coming from Asia, 20% from Europe and 10% from the US. This should bring its market capitalization to US$4.2b. Travellers will be listed on 5 Nov.

Our take: We estimate the final price for Travellers’ IPO to translate in a 2014E EV/EBITDA multiple of 14x. This sits well below the 15x multiple of Macau operators based on consensus estimates and slightly above our estimated 13.3x average multiple for comparable Philippine integrated resort operators Bloomberry (newly opened) and pre-operating MCP. - Bernard AviƱante

 - WealthSec