Casino developer Hann Holdings Inc, the holding company and parent of Hann Philippines Inc, has decided to delay its initial public offering (IPO), originally scheduled for next month. The company cited weak market conditions as the reason to postpone its debut in the Philippine Stock Exchange.
The casino investor said the current market environment was “not conducive to a successful offering that would best reflect the value and prospects of the company and ensure the best outcome for our investors and stakeholders”. That was according to a Friday letter to the Philippines’ Securities and Exchange Commission (SEC), as cited by the Philippine Inquirer newspaper.
Hann Holdings reportedly said in the notice that it was still deciding on a revised timetable for the IPO, which it would submit to regulators once it sees more favourable market and industry conditions.
The decision to delay the IPO was first reported by financial news agency Bloomberg, quoting Daesik Han, chairman and chief executive of Hann Philippines.
In mid-July, the SEC said it had approved Hann Holdings’ IPO, with the stock market debut originally scheduled for September 23.
According to the SEC’s announcement at the time, Hann Holdings was expected to raise up to PHP11.43 billion (US$202.1 million currently) from the primary offer. The funds were to be “used for capital expenditures to fund development and expansion plans, and general corporate purposes” of Hann Philippines.
The offer period was scheduled to run from September 9 to 15, with Hann Holdings offering to the public up to 500,001,000 shares, priced at PHP23.60 each.
Hann Philippines runs the Hann Casino Resort at Clark Freeport Zone, and is developing the Hann Reserve property (pictured in a rendering) at New Clark City, in the province of Pampanga. The first facility at Hann Reserve – a golf course designed by former world number-one-ranked golfer Nick Faldo – is expected to open by the end of this year.
In a recent interview with GGRAsia, Mr Han said the company had a “very strong first-mover advantage” in the Clark market.
The chairman also revealed that the company had decided to develop its announced InterContinental hotel as part of the expansion of the group’s existing Hann Casino Resort, instead of at the under-construction Hann Reserve property.
