Hann Holdings Defers $236M IPO as Casino Markets Change
Hann Holdings Inc. has chosen to postpone its PHP 13 billion ($236 million) initial public offering (IPO). Prior to this decision, the company remained undeterred by the struggles facing the country’s brick-and-mortar casinos.
Hann Holdings Inc. Takes a Step Back
Hann stated that the decision was prompted by current market conditions and sentiment, which the company believes are not favorable for a successful offering that would accurately reflect its value and potential, nor deliver the best outcome for investors and stakeholders. The company further emphasized that the move does not indicate any change in its fundamentals or long-term outlook. These will remain strong and aligned with the strategic vision for the company, its operating subsidiary, and the broader group, Hann explained.
The company had intended to offer 500 million common shares at a maximum price of PHP 23.60 (approximately $0.41) each, with an additional 50 million secondary shares allocated for an overallotment option. Proceeds from the IPO were meant to fund the company’s expansion into the premium integrated resort and leisure market in Central Luzon.
The company expected to raise up to PHP 11.43 billion (approximately $199 million) from the offering, with the proceeds intended for capital expenditures, expansion, and general corporate purposes through its subsidiary, Hann Philippines Inc. News of Hann Holdings’s decision comes just a few weeks after the Philipnes’ Securities and Exchange Commission greenlit the company’s plans.
Hann Holdings Will Continue Expanding
Hann Holdings’ flagship development is the Hann Casino Resort, located in the Clark Freeport Zone in Pampanga. The property includes a gaming floor, luxury hotel brands such as SwissĂ´tel and Clark Marriott, upscale retail outlets, and fine-dining restaurants.Â
The firm has outlined a strategy to strengthen its presence in Clark by expanding gaming capacity and introducing new non-gaming attractions. Planned additions include more food and beverage outlets, entertainment venues, and a retail complex featuring premium brands and upscale dining options.Â
The company also aims to diversify into online gaming; however, this initiative remains on hold pending clearer regulatory guidelines. This regulatory uncertainty underscores a key challenge for casino operators in the Philippines, where striking a balance between government oversight and industry growth continues to pose concerns for investors.
Despite the IPO delay, Hann reaffirmed its long-term growth strategy, stating that diversification across both gaming and non-gaming offerings will help attract a broader customer base.
