Published: Thursday April 25, 2013 MYT 10:36:00 AM
Gen Msia's Manila ops listing positive, said RHB Research
In a report on Thursday, it said Reuters reported that Travellers International Hotel Group, which owns and operates Genting's Resorts World Manila, has plans to embark on an IPO valued at up to US$500 million in Manila by third quarter 2013
Travellers International Hotel Group is Genting Hong Kong's 50%-owned joint venture that owns and manages Resorts World Manila (RWM). Genting Malaysia (GENM) holds a 18.4% stake in Genting Hong Kong.
“In view of the Travellers group's capital commitments in the next five years, we would not be entirely surprised if the potential IPO materializes. Based on our back-of-the envelope calculations, the group could potentially garner a market cap of close to US$2.5 billion to US$3.5 billion, assuming a listing of price to earnings of 15 times to 20 times,” it said.
It said the potential IPO would be positive for Genting Malaysia and Genting Bhd given their indirect interests in Travellers group.
“Nonetheless, given that Genting Malaysia's effective stake in the Travellers group works out to be an insignificant 9.2% while Genting Bhd's effective interest in Travellers group stands at 4.7% based on our computations, we would advise that investors take a look at Genting Hong Kong, which is currently trading at 19 times 1-year historical price to earnings ratio, as a more direct proxy play to the potential listing of Travellers group,” it said.