A deal insider revealed that the group decided to delay the IPO, worth around P12 billion, which was originally planned for the fourth quarter of 2024. This was due to later-than-expected interest rate cuts by the US Federal Reserve.
Foreign investors needed
“This is a big IPO and it has an international component,” the insider said. “So we need the Fed to also cut rates so international investors will move to Asia.”
Hann Resorts, established by South Korean businessman Dae Sik Han’s Hann Group in the Clark Freeport Zone in Pampanga, is the country’s largest integrated resort outside Metro Manila.
While waiting for better macroeconomic prospects, Hann Resorts is focused on delivering strong earnings for 2024, which will support the value of the IPO.
Thriving gaming hub in Clark
Data from state-run Philippine Amusement and Gaming Corp. (Pagcor) showed that gaming revenues from integrated resorts declined by about 4 percent to P49.5 billion in the first half of the year.
This suggests that some of the so-called mass market gambling segment is shifting to online games, which surged 525 percent during the same period, Pagcor data showed.
Nevertheless, the insider said Hann Resorts was showing resilient growth, thanks to visitors from South Korea and its proximity to the Clark International Airport.
One more IPO this year, and a looming delisting
Hann Resorts would have been the largest listing in the Philippines this year after IPOs were launched by OceanaGold Philippines, Citicore Renewable Energy, and NexGen Corp.
The Philippine Stock Exchange is anticipating at least one more IPO this year from energy trading and retailer Top Line Business Development, which aims to raise up to P3.2 billion in its public debut.
This will replace yet another exit from the PSE, which is the planned delisting of SFA Semicon Philippines Corp., which trades under the stock symbol SSP.
SFA Semicon Co. Ltd. will buy out minority stockholders of SSP at P2.22 per share, a 48 percent premium, according to a stock exchange filing last Aug. 22.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
