Discovery World: Initial Public Offering (IPO)



Discovery World Corp., the company that owns and manages, among others, the upscale hotels Discovery Shores in Boracay and Discovery Suites in Ortigas, is set to offer to the public for the first time its shares, after the Philippine Stock Exchange recently approved its IPO application.

The company will issue to the public 306 million common stock, eventually leading to a 40% public float.

The IPO offer period runs from August 12 to 19, and the listing date is set on August 29. Once listed, Discovery World will use the stock code “DWC” during trading.

The offer price for each share is P3.28, with the company expected to raise  more than P1 billion in said IPO.

According to the company, proceeds of the IPO will be used to invest in new businesses (P575 million), retire debt (P325 million) and boost working capital (P55.19 million).

For the new businesses, Discovery World has said they are planning to acquire a 20% stake in Enderun Colleges, a hotel and restaurant management college in McKinley, Fort Bonifacio.

The company also wishes to fully acquire Discovery Fleet Corp., a cruise operator that currently operates one cruise boat offering diving and non-diving programs.

DWC also will acquire a stake in Palawan Cove Corp., a company that owns beachfront properties in Palawan. One of its projects is Palawan Cove, a resort in Palawan still under construction and is expected to start operations in 2016.

Discovery World is owned by JTKC Inc. (66.07% share) and by The Discovery Leisure Co. Inc. (33.93% ).

The companies are primarily owned by the Tiu family (where famed basketball player Chris Tiu is a member of).

JTKC Inc. is a conglomerate operating in the real estate, mining, manufacturing and financial services industries. It has stakes in three publicly traded PSE companies: steel maker TKC Steel Corp. (T), coal miner Coal Asia (COAL), and remittance company i-Remit (I).

It also owns the local bank Sterling Bank of Asia.

The Discovery Leisure Co. Inc., JTKC’s real estate arm, owns and manages beachfront and hotel properties including Discovery Shores in Boracay, Discovery Suites in Ortigas, Pasig, .

 

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