Hann unfazed by online gaming woes; P13-B IPO approved

Hann Holdings Inc., the operator of an integrated gaming resort in Clark Freeport Zone, will still pursue its P13-billion stock market debut this year despite a tense gaming environment as some lawmakers call for an outright ban.

Ron Acoba, chief investment strategist at Trading Edge Consultancy, pointed out that Hann Holdings’ main source of income was its brick-and-mortar resort and casino, and that an online offering “is really just to supplement it.”

This is similar to Bloomberry Resorts Corp.’s recently launched MegaFUNalo app and Alliance Global Group Inc.’s unnamed online gaming system.

Hann Philippines currently has an 11-hectare property in Pampanga province, which includes the first five-star luxury hotel in Central Luzon, Clark Marriott and the first Swissotel in the country. It was originally the Widus Hotel in 2006.

Former stock market darling DigiPlus Interactive Corp., the operator of BingoPlus, ArenaPlus and GameZone, was dealt with the worst blow following Sen. Sherwin Gatchalian’s filing of a bill seeking to regulate online gambling.

At the same time, Maybank Securities Inc. head of research Kervin Sisayan noted that an IPO “makes sense” for Hann Holdings, especially if listing on the local bourse becomes a requirement for online gaming operators.

“Since the long-term outlook on physical gaming remains promising, it makes sense to expand now and attract more foreign players for the coming years,” Sisayan told the Inquirer.

Finance Secretary Ralph Recto recently explained that subjecting these companies to strict disclosure rules would promote transparency in the sector while also protecting the public.

Hann Holdings moved closer to its initial public offering (IPO) on Friday after the Securities and Exchange Commission (SEC) approved the company’s registration statement covering up to 2.5 billion common shares.

It will offer to the public 500 million primary shares at P23.60 each. It also has an overallotment option of up to 50 million shares that will be offered by Hann Group Holdings W.L.L., 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, based on its timeline submitted to the SEC.

Proceeds will be used for capital expenditures to bankroll development and expansion plans and general corporate purposes of subsidiary Hann Philippines Inc., the SEC said.

This is despite an increasingly challenging environment for the gaming sector, particularly online gambling, referred to as an “epidemic” by one lawmaker.

Hann Holdings earlier said in its prospectus that it wanted to expand its portfolio of electronic casino offerings to approximately 500 games by the end of the year from 103 currently.