Clark casino developer all set for P13-B IPO in September
Hann Holdings Inc. will proceed as scheduled with its stock market debut in September, brushing off the overall weakness of the brick-and-mortar casino operators in the country and looming online gaming policy changes.
South Korean businessman and Hann chair and CEO Han Dae-sik told reporters on Wednesday they were banking on the luxury hotel operator’s first-mover advantage in Clark to drive growth and stand out among its competitors.
This is especially since Hann has captured 47 to 48 percent of the market share in the former US military base.
“First, I believe in the potential of Clark,” said Hann, who first visited Clark in July 2005 as a tourist before eventually opening Widus Hotel in 2008 and Widus Tower One, his first casino, in 2009. “Second, I believe in my project.”
Han is referring to the 455.6-hectare Hann Reserve, a mixed-use development in New Clark City where he plans to build three golf courses, which he noted was “much more expensive” than the usual. (See related story in Biz Buzz)
The first phase of Hann Reserve, which broke ground in 2022, is set for completion in 2027. For its second phase, it will house several luxury hotel brands, with construction expected to begin in 2028.
As for the two-story facility near Hann Casino, it will have an aggregate gaming area of 3,225 square meters and add 62 gaming tables, 558 slot machines and 26 electronic table games to Hann’s existing capacity.
The first level is scheduled for completion in March 2026.
In pursuing its P13-billion initial public offering (IPO) and the expansion of its brick-and-mortar casino despite the weak performance of its competitors in Metro Manila, Han said it was all about seeing risk and opportunity together.
“There are very few companies going for IPO, provided there is still investor appetite from the international market … there’s no competition,” the CEO said. “I’m different. I was able to somehow convince [investors] because they appreciate the differentiation.”
Currently, 70 percent of Hann Resort’s customers are local visitors, while 30 percent are foreigners. Of the latter, 95 percent are Korean.
With tourist arrivals from South Korea having declined by 19 percent in the first five months of the year, Han, who has so far invested $1 billion in his Philippine business, said they wanted to capture more markets, including Taiwan and Japan.
Han explained, “Definitely, the local market is very important, but there is somehow limited growth if we are dependent on the local market.”
Hann will be the second company to brave the highly volatile stock market this year, after Cebu-based fuel retailer Top Line Business Development Corp.
Based on its preliminary prospectus, Hann will offer 500 million primary shares at P23.60 each. It also has an over-allotment option of up to 50 million shares that will be offered by Hann Group Holdings WLL, an existing shareholder, for the same price.
The shares will be offered from Sept. 9 to Sept. 15 and listed on the main board of the Philippine Stock Exchange on Sept. 23.
Once listed, Hann wants to gradually increase the revenue contribution of its nongaming business, currently at just 15 percent.
Apart from the expansion of its physical casino, Hann also plans to expand its online gaming offerings, although Han clarified that this “omni platform” would largely complement its offline operations.
Asked whether they were concerned about potential online gaming policy changes, Han said, “Not really. But I support the idea that the online gaming industry has to be more regulated by the government.”
