October 07, 2013

Travellers revises maximum offer price to 11.88

Travellers in a briefing to investors has set the maximum price of its planned IPO at P11.88/sh from P23.38/sh as previously disclosed.

Our take: The revised maximum offer price translates to about 14.4x 2014 EV/EBITDA by our estimates and fares well vs. the comparable multiples of BLOOM (14x) and MCP (13x) when they had their respective share offerings.

Depending on the final offer price, we see Travellers as a staple stock among investors since a dividend policy will be in place.

Fundamentally, though competition is perceived to intensify further in the months ahead, Travellers' first mover advantage is a compelling reason subscribe / buy the stock. - WealthSec