IPO Analysis: Travellers Hotel Group Inc. (RWM)



Should you invest in the initial public offering (IPO) of a company?

An initial public offering or IPO is the primary offering of a company’s shares of stocks to the public. It is called “primary” or “initial” offering because prior to an IPO, a company is privately-owned and its shares privately-held by a select group of people.

Through the IPO, a company can raise funds from the public that is typically used for expansion, debt payment, working capital funding, or other corporate and organizational matters.

No one can accurately predict if it will be profitable to buy a company’s stock during its IPO. But it helps to have guidance from the country’s top stock brokerage firms!

One useful source of information is PinoyInvestor, a premium stocks newsletter that consolidates stock picks, company analyses, and broker reports from five of the Philippines’ top stock brokers.

In this week’s issue, the PinoyInvestor Stocks Report offers a comprehensive analysis and recommendation on the upcoming IPO of Travellers International Hotel Group Inc. (RWM).

Here are basic information about the RWM initial public offering.

Travellers Hotel Group Inc. (RWM)

Travellers owns and operates Resorts World Manila in Newport City. Resorts World Manila is a gaming, shopping and entertainment center with three (3) hotels — Maxims Hotel, an all-suite luxury hotel; Marriott Hotel Manila, a five-star hotel catering to international business and leisure travelers; and Remington Hotel, a mid-range hotel.

In its IPO, Travellers is offering 1.57 billion shares at P11.68 per share with an over-allotment option of 235.98 million shares. The company plans to raise a total of P16.76 billion (excluding over-allotment), 46% of which will fund the Phase 2 expansion of the Marriott Grand Ballroom and Marriott West Wing by 2015. The rest will be used for the Phase 3 expansion of Maxims Hotel and the construction of Hilton Manila and Sheraton Hotel Manila by 2017.

Should you invest in the RWM IPO?

To learn more about the valuation, profitability, and financial condition of Travellers Hotel Group, sign up or login to PinoyInvestor to access this week’s Stocks Report. The report also contains the recommendation of Angping Securities as regards the RWM IPO.

 

By the way, PinoyInvestor currently has an ongoing promo where you can get for FREE iPhone 5S, iPad, iPad Mini, Samsung Galaxy S4 and SM and Ayala Malls gift certificates. Read it here: PinoyInvestor’s FREE iPhone, iPad, Gadgets Giveaway!

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