Hann Holdings indefinitely postpones IPO
Poor market conditions and negative investor sentiment have pushed Hann Holdings Inc. to indefinitely postpone its P13-billion stock market debut that was originally scheduled next month.
In its Aug. 22 letter to the Securities and Exchange Commission (SEC) seen by the Inquirer, Hann said the current 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.”
It pointed out, however, that this did not reflect Hann’s long-term prospects, which “remain strong as ever.”
Hann was originally set to offer 500 million primary shares at P23.60 each from Sept. 9 to 15. Listing on the main board of the Philippine Stock Exchange was initially scheduled on Sept. 23.
Hann, the developer of five-star luxury hotel Clark Marriott, also has an over-allotment option of up to 50 million shares for the same price.
For now, Hann said it was still evaluating a revised projected timetable that it would submit to regulators once it sees more favorable market and industry conditions.
The deferment, first reported by Bloomberg, also happens amid what has been a difficult time for brick-and-mortar casino operators.
For instance, Enrique Razon Jr.-led Bloomberry Resorts Corp., the operator of Solaire Resorts and Casino, halved its net income in the first semester due to its weak VIP segment.
Despite this, Hann chair and CEO Dae Sik Han earlier told reporters they were banking on his company’s first-mover advantage in Clark to entice investors.
Hann plans to use more than half of the total IPO proceeds to expand its operations through the 455.6-hectare Hann Reserve, a mixed-use development in New Clark City.
It also wants to develop a new two-story facility adjacent to the existing Hann Casino in Clark Freeport Zone and broaden its online gaming offerings.
This, despite threats of an outright ban on online gambling that have battered both Bloomberry and former stock market darling DigiPlus Interactive Corp.
The local bourse has so far only seen one IPO this year—Cebu-based fuel retailer Top Line Business Development Corp.—as investors navigate challenging market conditions brought about by geopolitical tensions and the global trade war.
Concessionaire Maynilad Water Services Inc. was initially scheduled to debut in July, but it had decided to move this to October, citing the need to accommodate cornerstone investors.
