In order to boost the development process of a company, a common strategy is to sell part of the shares and introduce a breath of fresh air. This is the current state of Bloomberry Resorts which is going through the process of selling a 3.18 percent stake. Enrique Razon, Chairman and Controlling Shareholder at the Philippine-listed casino company, has placed over 350 million shares for sale raising useful at the moment capital.
The overnight placement was performed by Prime Metroline Holdings which is owned by Enrique Razon, and each share was sold at 10.85 pesos. This is 9 percent less than what they were selling for on Monday when they were trading at 11.90 pesos. This is one of the highest stats for the share price of the company since Bloomberry Resorts is well-known for its consistently high share prices. Regardless of the lower price, this unloading of shares brought the company about 3.8 billion pesos (US$75 million) and they attracted influencing investor in the field from all around the world in no time. Goldman Sachs Singapore was performing the role of the sole placement agent and the whole process went smoothly.
Razon stated that the move has proven to be beneficial for the commercial casino operator and the future is bright for the company. Increased liquidity in the stock of Bloomberry Resorts has been expected to attract the needed attention and assist in bringing new international investors to the operator which could propel the company forward. For the time being Prime Metroline Holdings still owns the controlling stake in the casino operator, amounting to 65.58 percent. According to recent information, the integrated resort company has a market cap amounting to $131 billion.
For the moment the purpose of the fund raising is still unknown since Mr. Razon has not stated his intentions, but according to some previously stated plans, a new casino might be on the way. The businessman is likely to invest the fresh capital into the building of a smaller casino venue in northern Metro Manila. Enrique Razon is also the owner of port operator International Container Terminal Services, which is in the pursuit of expansion as well, so the amassed amount of money could serve as the means to do this.
This sale of company shares is no surprise to anyone because the Bloomberry Resorts has maintained its continuously high share price at 11.94 pesos for the last year. For H1 of 2017, the casino operator has amassed a net income of 4.11 billion pesos, which makes for an impressive growth of the year-to-year revenue – up to 24 times more. Experts in the casino industry all agree that the impressive figures are due to the improvement of the communication between Manila and Beijing.